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China tells US not to politicise trade rows

Tuesday, 11 December 2007


BEIJING, Dec 10 (Reuters): The United States should resolve trade rows with China through dialogue on an equal footing and should not politicise them, a senior commerce ministry official said in remarks published today.
The warning by Chen Deming came a day after Finance Minister Xie Xuren said legislation being considered by the US Congress could seriously harm trade ties with China.
The comments put down a marker for two rounds of cabinet-level talks in Beijing this week. On Tuesday, US Commerce Secretary Carlos Gutierrez and Trade Representative Susan Schwab take the lead, followed Wednesday by Treasury Secretary Henry Paulson.
In an interview with the official China Daily, Chen expressed concern that the trend towards politicising trade and economic issues could mount as the November 2008 US presidential election approaches.
America's record trade deficit with China will be high on the agenda this week. Washington wants Beijing to open its market wider to foreign firms and let the yuan rise faster.
Chen, a newly appointed vice-minister who is in line to take over the top job, said US media coverage of issues such as the exchange rate, food safety and intellectual property rights had been "hindering the normal development" of two-way ties.
He said growing economic independence meant the two countries had more and more common interests that called for cooperation.
"Thus, the two sides should clarify the responsibility each side should shoulder, face and resolve structural problems in the economy, and strengthen dialogue and communication," he told the paper.
"We should avoid unreasonably and unilaterally blaming the other side," he added.
Meanwhile, a senior US official struck a conciliatory tone on product safety today ahead of high-level talks with China likely to be dominated by US fears of substandard Chinese-made food and drugs.
Recalls, mostly by US companies such as giant toymaker Mattel, have stoked worries about cheap Chinese exports, which now account for about three quarters of the world's toys.
Insisting that Washington and Beijing were working well on safety issues, Secretary of Health and Human Services Mike Leavitt said this was a question of improving the monitoring of imports not only from China but from the rest of the world.
"We think we are on a glide pattern which will produce a successful outcome in our relationship with the Chinese government," Leavitt told reporters in Beijing, on a trip where he will sign agreements to strengthen product safety.
"Our message to China, as well as to every other import/export partner we have, is if you desire to produce goods for the American consumer, you need to meet American standards of quality and safety," he said.
"We want you to know what they are, and we'll work with you to meet them," Leavitt added.
Mattel has recalled more than 21 million Chinese-made products in the past few months. There have also been global scares over tainted pet food, toothpaste and fish from China. Those scandals have provoked protectionist trade calls from some US politicians, already angered by what they see as China's artificially undervalued currency, the yuan.
But Leavitt said US consumers could also take more responsibility.
"Consumers can in fact do things that would ensure quality for themselves. We encourage them to deal with retailers they trust, to ask those retailers what they're doing and what the process is they're following," he said.
Food and product safety is likely to dominate cabinet-level Sino-US talks that start Wednesday just outside Beijing, even if currency issues are on participants' minds, US Treasury Secretary Henry Paulson said last week.