US trade chief raises WTO concerns

China is not doing enough under its WTO commitments, particularly in the areas of market access and protection of intellectual property rights, US Trade Representative Rob Portman said in Beijing yesterday.

He also called on Beijing to become more involved in negotiations over agricultural subsidies to try to salvage next month's World Trade Organisation meeting in Hong Kong, which he said was being jeopardised by obstinacy from the European Union.

"These talks are a once-in-a-generation opportunity. We need China's voice at the negotiating table to push for an ambitious and successful result in the Doha round," he said.

The meeting in Hong Kong is part of the current round of WTO talks that began in 2001 in Doha, Qatar. An agreement on the reduction of rich countries' agricultural tariffs and subsidies is crucial to the success of the meeting.

"We've got to get the tariffs down but the EU is frankly not willing to provide meaningful market access by reducing their tariffs or quotas," Mr Portman said. "I think China can be helpful in encouraging the EU to take on its part of the responsibility in agriculture."

He said the US deficit with China was set to exceed US$200 billion this year, almost US$40 billion more than last year's record amount, and this was causing public attitudes in the US to turn against China.

"Most Americans do not believe that our massive and growing trade deficit is the result of fair and open market processes," he said.

He made no mention of the fact that foreign-invested enterprises in China were responsible for an estimated 57 per cent of China's exports last year. That figure is expected to increase to at least 60 per cent this year, meaning that a large share of China's trade surplus is benefiting US and other foreign investors in China.

Mr Portman singled out the motor, insurance, telecommunications and direct sales industries as areas where China was not allowing a level playing field for foreign firms to compete.

The issue of intellectual property rights is the biggest complaint from foreign businesses operating in China and Mr Portman stressed its importance at a number of public appearances yesterday.

"Fakes on every street corner are an unbecoming symbol for a world power such as China," he said in reference to the country's ubiquitous CD and DVD salespeople. He also called for Chinese government offices and state-run firms to stop using fake software.

Only last week Mr Portman and Commerce Minister Bo Xilai reached an agreement to limit the flood of cheap Chinese textiles into the US market.

US President George W. Bush arrives on the mainland this week and is expected to press for greater market access for American companies and a tougher stance on intellectual property protection.