Foreign and Military Affairs

Ending restrictions key to Sino-US trade imbalance

By WANG YAN (China Daily)
Updated: 2010-04-30 07:30

BEIJING - The United States should revamp its restrictions on exporting high-tech products to China, as it is key to balancing the trade gap between the two countries, a senior Chinese official said on Thursday.

Xu Chao, a senior official with the State Intellectual Property Office, said the current restrictions could be the biggest obstacle to reducing cross-border trade deficits.

The deficits in Sino-US trade have remained high for several years, even in times of economic crisis.

"The US has unilaterally blamed China for putting restrictions on the import of US goods, while it restricts the export of high-tech products. It seems contradictory to me," Xu told a press conference.

He said China has urged the US to ease its high-tech export ban several times, but all attempts were in vain.

"The problem ought to be solved, and we will raise the issue during the coming economic and trade talks with the US," he said.

Christian Murck, President of the American Chamber of Commerce in China (AmCham-China), a non-profit organization that represents US companies and individuals doing business in China, said he believed the current US export processes overly restricts commercial trade in certain areas.

"We understand the need for export controls by all countries in their promotion of national security. At the same time, we recognize that the current US system is more burdensome than other systems," Murck said.

He said the organization is working to communicate China's market realities to the US government to ensure that the US export control system accomplishes the fundamental objectives of enhancing international security and commercial trade promotion.

"AmCham-China is hopeful about the prospects for change during the current export control reform process. At the same time, we understand that the degree of reform will take possibly years to implement. We anticipate that there will be benefits for US-China high-tech trade in the long-term," he said.

Based on a survey of the business community in China, nearly all US sales lost due to export controls were filled by other non-US companies, he said.

"The problem from AmCham's point of view is that the US administrative process is cumbersome and some buyers simply don't want to go through it so they never apply," he added.

Doug DeVos, president of US company Amway, also called for loosened restrictions on high-tech exports to China from the US.

"It's necessary to let the world know that foreign companies' technologies are welcome in China and will be protected by the country's intellectual property system," he was quoted as saying by the People's Daily.

A proposal to the US Congress earlier this month was meant to revamp the country's export control system, focusing on dual-use technologies - items like computers and helicopter spare parts that are sold commercially for civilian use but which can also be used for military purposes.

Chinese Commerce Minister Chen Deming said in March that China's imports of high-tech products have been growing rapidly in recent years, but those imported from the US declined to 7.5 percent of imported products in 2009, from 18.3 percent in 2001.

Chen said in an interview with The Washington Post in March that the best way for the US to increase its exports to China would be to relax restrictions on the export of high-tech and dual-use goods to China.