Share this

by

Dan Martin

China said Tuesday constant US criticism over trade disputes was hurting economics ties, although the world powers agreed at top-level talks to cooperate on improving the safety of Chinese exports.

Chinese Vice Premier Wu Yi used her opening remarks at an annual one-day trade meeting here to hit out at what she said was rising protectionist sentiment in the United States.

"There have been some disharmonious notes in China-US relations this year. The inclination to politicise (trade) issues has increased," Wu said.

"Trade restrictions, and protectionist measures, can only hurt both sides."

She was referring to a spate of bills introduced by US lawmakers that could lead to new legislation targeting alleged unfair Chinese trade practices, amid an ever-expanding trading imbalance between the two sides.

The United States' trade deficit with China ballooned to 23.8 billion dollars in September, up 5.5 percent from August, according to the latest US figures.

The United States has also initiated action at the World Trade Organisation this year over trade disputes, including alleged Chinese intellectual property rights abuses and unfair industrial subsidies.

US Commerce Secretary Carlos Gutierrez said that, during talks among delegation chiefs before the official meeting, Wu had "mentioned very strongly and very directly that she felt uncomfortable" with the US actions at the WTO.

Gutierrez urged China not to take offence at the WTO complaints.

"When we take a case forward in a legal fashion, we do so as a matter of business but never as a matter of disrespect," he said, while adding that the US administration remained opposed to protectionism.

In her opening remarks to Gutierrez and Trade Representative Susan Schwab, co-leaders of the US delegation, Wu also criticised US media reports about the safety of Chinese-made products.

"The US media has hyped the product safety issue, causing serious damage to the image of Chinese products and China's national reputation," she said, adding the politicisation of trade issues had also had an impact.

Nevertheless, the talks wrapped up with two agreements that saw the nations pledge to work more closely on improving the safety of food, farming feed, drugs and medical devices exported from China to the United States.

Chinese producers of the affected items, which include some at the centre of recent US bans and recalls, will be subject to strict supervision, with the results of regular safety checks passed on to US authorities.

"The most important aspect of this agreement is that it gives broader access by US officials to producers in this country," US Health Secretary Mike Leavitt said at the signing ceremony in Beijing.

In total, 14 agreements were signed, including one that seeks to increase the number of Chinese tourists to the United States.

The talks were the 18th annual session of the Joint Commission on Commerce and Trade, held to discuss specific trade-related issues.

Gutierrez gave a cautiously positive assessment of the day's proceedings, saying there was some "specific, tangible, incremental progress on individual issues".

"It's some progress. Is it everything we would have liked? No," he told reporters.

On Wednesday, a two-day Strategic Economic Dialogue will begin. Held twice a year, it is meant to look at longer-term trade issues between the two sides.

US Treasury Secretary Henry Paulson, who will head the US team to the dialogue, has already flagged concerns over China's trade practices to be discussed.

One of the biggest issues for the United States is China's currency, the yuan, which critics charge is being kept artificially weak to allow Chinese firms an unfair advantage when they sell their products overseas.

Paulson last week called on China to immediately revalue the tightly-controlled yuan.Agence France Presse