Group Makes Recommendations to Congress on Increasing U.S. Exports to China

(The USCBC states that it is a private, nonpartisan, nonprofit organization of about 220 U.S. companies that do business with China and operate within the U.S. and throughout Asia. USCBC's mission is to expand the U.S.-China commercial relationship. It favors constructive engagement with China to eliminate trade and investment barriers and develop a rules-based commercial environment that is transparent to all parties.)

Highlights of USCBC Recommended Actions for U.S. Contacts with Beijing

The following are select USCBC recommended actions on how Congress can best address the challenges present in the U.S.-China economic relationship:

• Continue opening economy: ensure the continued opening of China's economy to accelerate the growth of U.S. exports to China and enhance the role of U.S. companies selling goods and services in the Chinese market. This helps U.S. companies and workers by bolstering the jobs base in the U.S. and helps bring U.S. business standards and practices to China.

• Build on gov't dialog: size the government-to-government dialog to fit today's larger and more complex commercial relationship. USCBC states that the U.S. should build on the successful foundation of the U.S.-China Strategic and Economic and the U.S.-China Joint Commission on Commerce and Trade and add more resources to the Office of the U.S. Trade Representative to better enforce trade rules.

• Press for rules-based trade: keep pressing forward for a rules-based trading relationship, through bilateral contacts and established legal channels such as the World Trade Organization.

• Promote SMEs: support the efforts of the National Export Initiative, which includes priorities for smaller businesses by increasing resources for the Foreign Commercial Service to assist small and medium sized enterprises (SMEs) to export to China. Additionally, the U.S. should use its role as host of the 2011 Asia-Pacific Economic Cooperation (APEC) to promote engagement by SMEs in Asia, and especially China.

• Work on food & product safety: continue top-level and working-level government programs to increase China's food and product safety capabilities, which includes (1) encouraging the Chinese government to view U.S. companies as part of the solution on food and product safety issues through education, training, and best practices programs, and (2) allowing U.S. companies to test products sold in China for safety and compliance, not just those destined for export, to support China's efforts to build consumer confidence.

• Use trade remedies as needed: when good-faith dialog with China fails to resolve problems with China, the U.S. should use bilateral trade remedy tools consistent with international rules, such as antidumping investigations, and multilateral dispute settlement mechanisms such as WTO cases when well-defined, winnable, and supported by industry, to eliminate unfair advantages and level the playing field for U.S. companies.

• Achieve a market-driven exchange rate: increase emphasis on multilateral discussions to enhance progress already made toward bringing China's currency value in line with the global marketplace. The U.S. should continue to focus on China's financial reforms (including market openings to U.S. financial services providers) as the ultimate solution to achieving a fully convertible currency and a truly market-drive exchange rate.

USCBC report is available here.