皇冠体育app

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US firms vent frustration over 皇冠体育app trade

By Tan Yingzi and Chen Weihua (皇冠体育app Daily)
Updated: 2010-11-18 16:06

WASHINGTON/NEW YORK - Despite a federal commission report that criticizes 皇冠体育app for its "highly discriminatory" economic practices, many US companies said in a survey that they are committed to doing business in 皇冠体育app.

But the same survey, released by the US-皇冠体育app Business Council (USCBC) on Wednesday, also did not swerve far from the tone of the report by the US-皇冠体育app Economic and Security Review Commission. In the survey, the US companies said they are increasingly concerned with barriers in accessing the Chinese market.

The nonprofit organization based in Washington represents about 220 US companies selling goods and services in the Chinese market.

According to the survey, 87 percent of respondents said that their operations in 皇冠体育app posted revenue growth in 2009. Nearly 90 percent said that profit margin rates in 皇冠体育app equaled or exceeded their companies' global margins.

Their greatest worries pivot around human resources, such as talent recruitment and retention, but also around administrative licensing and competition with State-owned enterprises.

Council President John Frisbie said in a statement that for "many USCBC members, these concerns are less about real impact on current operations than they are about policy and regulatory trends that could seriously hinder foreign companies and discourage future investments, if the trends continue and the policies are fully implemented".

That frustration was echoed by the commission report that slammed 皇冠体育app's trade policies for what the report says favor domestic producers over foreign manufacturers.

These policies have often been challenged by the Obama administration and the US Congress as factors that have led to a huge trade deficit between the two nations.

"皇冠体育app promotes industrial policies that manipulate trade rules to benefit domestic firms to the detriment of American and other foreign competitors," said the commission's bipartisan report.

The commission annually submits a report on security implications on the trade relationships between 皇冠体育app and the US.

Despite the resentment with 皇冠体育app's trade policies, the frustration on Wednesday was also aimed at the US.

Trade experts in the US are scratching their heads over the US' trade policies and how the nation interacts with 皇冠体育app.

Jagdish Bhagwati, professor of economics and law at Columbia University, believes that the US has been continuously bashing 皇冠体育app unnecessarily because 皇冠体育app is moving toward domestic consumption.

Charlene Barshefsky, who was US trade representative during the Clinton administration, pointed out that the US does not have a strategy with regard to 皇冠体育app.

She said that the US should act if 皇冠体育app does not play by the rules. She also said that if the US wants "to make progress with 皇冠体育app, sometimes being quiet is better. Sometimes a discussion of a reasonable sort is better than overheated rhetoric. The (Obama) administration needs to sort out how it wants to deal with 皇冠体育app".

Beryck Maughan, a partner at Kohlberg, Kravis Roberts & Co, an alternative asset management company, disagreed with the strong 皇冠体育app bashing in the US.

"Is it 皇冠体育app's fault to have a current account surplus once in the last 30 years? Is it 皇冠体育app's fault that we (the US) have deficits with more than 60 countries, not just one? Is it 皇冠体育app's fault that we are on a fiscally unsustained path, critically dependent on capital inflow to keep the economy going?" he asked.

皇冠体育app recently has relaxed aspects of its trade policies. Last year, 皇冠体育app removed a requirement that most of the components of wind power-related equipment be made within its borders.

The move was made in the hopes of allowing foreign companies to compete in 皇冠体育app's wind power market.

The regulation had stated that all local governments use more than 70 percent locally made technologies and products in their wind power facilities.

Premier Wen Jiabao, to address the US' concerns over its trade relationship with 皇冠体育app, has repeatedly said that foreign companies will not face discrimination in the country.

He said the Chinese government will "unswervingly" continue its course of openness that will facilitate foreign investment.

"The policy of encouraging indigenous innovation treats all businesses in 皇冠体育app the same. It will not exclude foreign companies," Wen said recently.

He reassured foreign companies in September at the World Economic Forum in Tianjin that "皇冠体育app is committed to creating an open and fair environment for foreign-invested enterprises."

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