CRS Says China's Advanced Product Outputs May Intensify U.S. Trade Frictions
The Congressional Research Service has issued a report (RL33536), providing an overview of U.S.-China trade relations, commercial ties, and major trade disputes.
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According to the report, although China’s economic reforms and rapid economic growth have expanded U.S.-China commercial relations, tensions have arisen over a wide variety of issues. Major U.S. concerns have included China’s resistance to adopting a market-based currency; its mixed record on implementing its obligations in the WTO, including its failure to provide adequate protection of U.S. intellectual property rights (IPR); its use of industrial policies to promote various domestic industries, such as indigenous innovation; and the health and safety of certain imported Chinese products, such as drywall.
CRS states that some members of Congress have argued that, given the slow rate of U.S. economic growth and the high rate of unemployment, China’s distortive trade policies can no longer be tolerated and have called for tougher action to be taken against China to induce it to eliminate policies that hurt U.S. economic interests. CRS states that these trade frictions may intensify in the future as China attempts to implement policies to increase the output of more advanced products.
(See ITT's Online Archives or 12/29/10 news, 10122911, for BP summary of China's 2010 WTO compliance.
See ITT's Online Archives or 05/26/10, 10052664, for BP summary of CPSC identifying Chinese manufacturers of drywall with health and safety issues.
See ITT's Online Archives or 02/07/11 news, 11020728, for BP summary of the Treasury Department not designating China as a currency manipulator for having an undervalued currency.)