China, US agree to dialogue

Chinese and US officials called for joint efforts to address disputes through dialogue instead of protectionism at the 18th Sino-US Joint Commission on Commerce and Trade (JCCT), in Beijing yesterday.

Vice-Premier Wu Yi told the opening ceremony some "unharmonious notes" have been heard in the Sino-US trade ties this year.

"It is marked by a sharp rise in the number of congressional legislation against China, evident politicization of economic and trade issues, strengthened control on exports to China and the purposeful exaggeration of China's food and product safety," she said, adding that some US officials and businesses had made great efforts in blocking such protectionist legislation.

The US Commerce Secretary Carlos Gutierrez also confirmed: "The best way to address our deficit is not by reducing imports. Protectionism is something we must avoid together."

Consensus was reached on a wide range of sectors aimed at facilitating bilateral trade and investment during the cabinet-level meeting:

Ensuring an open and non-discriminatory investment regime

China made a strong statement reiterating its commitment to open investment and competition policies and to the principle of non-discrimination in investment regulation.

Government Procurement Agreement (GPA)

China confirmed it would submit, by the end of 2007, its initial offer on Chinese government agencies that would be covered by the WTO GPA. China's joining the GPA is expected to provide American companies access to a $35 billion per year government procurement market.

Telecommunications

China confirmed that it would lower the registered capital requirements for US telecommunications service providers to operate in China.

Cape Town Convention

China confirmed that it initiated the ratification process. China's ratification of the Cape Town Convention will reduce the risk in financing aircraft purchases, making less expensive the financing terms available to Chinese airlines, thus making it easier for Chinese airlines to purchase US aircraft.

Agriculture

China agreed to allow six US pork processing facilities to resume exports to China.

China agreed to eliminate the requirement to submit viable biotech seeds for testing, which will reduce the possibility of illegal copying of patented agricultural materials.

IPR

China reported on steps it had taken since the previous JCCT in April 2006 to improve the protection of intellectual property rights in China, including accession to the World Intellectual Property Organization Internet treaties.