U.S. Chamber Joins Global Business Community in Expressing Concern Over Chinese Protectionism

WASHINGTON, D.C.—The U.S. Chamber of Commerce today joined 33 business associations from around the world in expressing profound concern over a recently issued Chinese circular that will substantially restrict the ability of foreign companies to sell their products in China and contradicts the Chinese government's commitment to resist trade and investment protectionism.

"China's Indigenous Innovation Product Accreditation system represents a significant and qualitative increase in ongoing Chinese government efforts to favor domestic enterprises, press for non-market-based technology transfer from foreign companies, and restrict the ability of foreign business to compete in the China market," said Myron Brilliant, senior vice president for International Affairs at the U.S. Chamber of Commerce. "We are deeply concerned that implementation of this policy would undermine the more positive relationship that the leaders of the United States and China, supported by their business communities, have been working so hard to achieve."

The Chamber notes that American companies have made significant contributions to China's technological development and innovation capacity. The criteria, which include tough requirements on intellectual property and the commercial origin of trademarks, would make it virtually impossible for any non-Chinese companies to participate in China's government procurement market—even those that have made substantial and long-term investments in China, employ Chinese citizens, and pay taxes to the Chinese government.

The new program also calls into serious question China's commitments at the July 2009 U.S.-China Strategic and Economic Dialogue and November's Joint Commission on Commerce and Trade meetings, in which China clarified that its procurement policies were open to foreign-invested enterprises (FIEs) and recognized the importance of non-discriminatory procurement policies.

"The U.S. Chamber is a long-standing supporter of a U.S.-China bilateral relationship and believes that the commercial relationship remains the core of bilateral ties," continued Brilliant. "We welcome the opportunity to exchange views and share experiences with the Chinese government on how best to advance science and technology goals, to promote innovation, and advance consumer welfare and choice. But China's pursuit of state-led discriminatory policies is counterproductive to China's innovation goals and to the shared objective of strengthening U.S.-China commercial relations."

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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