China is still flouting World Trade Organisation rules 11 years after it first joined, misusing the complaints machinery for tit-for-tat retaliation, said US Trade Repesentative Ron Kirk.
“China’s trade policies and practices in several specific areas cause particular concern for the United States,” said Mr Kirk in his year-end report to Congress.
“China’s regulatory authorities at times seem to pursue anti-dumping and countervailing duty investigations and impose duties for the purpose of striking back at trading partners that have exercised their WTO rights in a way that displeases China,” said the report.
A range of policies raised “increasing concerns that China has not yet fully embraced the key WTO principles of market access, non-discrimination and transparency. China’s incomplete adoption of the rule of law has exacerbated this situation.”
The report accused Chinese officials of running rough-shod over foreign firms, forcing them to give up trade secrets in clear violation of WTO rules.
The harsh language will infuriate Beijing at a time when tensions are already high over maritime disputes on the Pacific Rim, where the US is increasingly embroiled as the region’s guarantor. Washington’s so-called “Asian Pivot” is viewed with deep mistrust by China’s Politburo as the start of an encirclement strategy.
The trade frictions are in stark contrast with growing US support for a sweeping trans-Atlantic trade deal with Europe, aimed at eliminating tariffs. It would be the most ambitious deal of its kind ever attempted.
Talks are expected to begin in early 2013 as the US warms to the theme on hopes that Europe will lift curbs on US farm goods and genetically modified crops — though France and Spain are certain to fight hard to defend their farmers.
Telegraph has the full article
