U.S. to Boost Effort on China Trade Barriers

The U.S. trade office pledged Tuesday to use “all options available” to get China to drop its barriers to U.S. exports as the Bush administration tries to shrink a record trade deficit and stem criticism from Congress.

China must open its market to more imports, crack down on the piracy of copyrighted movies and software and curb subsidies to exporters in order to cut its trade surplus, the federal agency said in a 29-page review of trade policy toward China.

To prod China along, at least a dozen people will be hired in Washington and Beijing, with one new office focused on getting China to live up to its commitments in the World Trade Organization, the report said. It is the first time the U.S. has singled out one country for such scrutiny.

“Our bilateral trade relationship with China today lacks equity, durability and balance,” U.S. Trade Representative Rob Portman said at a news briefing in Washington announcing the findings of the 10-month study.

Portman called last year’s $202-billion U.S. trade deficit with China politically unsustainable.

The Bush administration is trying to head off legislation in Congress to impose punitive tariffs or import quotas on Chinese goods, proposals the administration says would undermine the benefits of commercial engagement with China. At the same time, the administration’s report lays out specific changes the Chinese should make to allow more U.S. exports and narrow the trade gap.

Democrats in Congress, labor unions and some manufacturers have blamed the widening trade gap on China’s practice of subsidizing domestic companies and holding down the value of its currency. And they have criticized the Bush administration for not doing enough to curb China’s use of those trade practices.

Portman is scheduled to testify today before the House Ways and Means Committee.