U.S. Chamber President Urges Progress on U.S.-China Trade

Ahead of S&ED, Donohue Calls on Leaders in Beijing to Address 'Growing Concerns'

SHANGHAI, CHINA—After completing a series of meetings with senior Chinese leaders, U.S. Chamber of Commerce President and CEO Thomas J. Donohue called on officials in the United States and China and to make concrete progress on issues that he said could stall the growth and momentum of commerce between the two countries.

In an address today to the American Chamber of Commerce in Shanghai, Donohue said he told Chinese leaders that "Overall, our member companies tell us that their experiences in China's market are positive and profitable. Yet there are growing concerns about whether China is backtracking on the progress it has made to open its economy and whether U.S. companies will have a level playing field."

"These concerns have risen to the highest level I have seen in 10 years," Donohue said.

As U.S. cabinet members and their Chinese counterparts gathered for a fresh round of talks in the Strategic and Economic Dialogue, which begin today in Beijing, the Chamber President met Friday with Vice President Xi Jinping and other senior Chinese leaders and ministers.

Donohue said he told Chinese officials that his members were "concerned about China's industrial and indigenous innovation policies—including the use of discriminatory government procurement lists, standards setting and tax measures, and compulsory certification rules which seem designed to force technology transfer and restrict foreign competition." While Donohue welcomed the Friday evening release by the Ministry of Finance of a draft procurement product content standard for comment, he urged that further steps be taken, including elimination of procurement lists and China's timely accession to the World Trade Organization's Government Procurement Agreement.

Donohue outlined other matters, including ongoing investment and operating restrictions in sectors such as financial services, insurance, telecommunications, distribution and logistics, direct-to-consumers services, and express delivery services.

"We need to see some additional movement on currency as well," Donohue said. "And while there has been a significant commitment in China to strengthen IP laws and enforcement, we remain concerned about high levels of piracy and counterfeiting, as well as questions about the protection of foreign patents."

Donohue said he believed his messages will be taken seriously by Chinese leaders. "They know the Chamber has been and will continue to be a leader in advancing one of the most critical commercial and strategic relationships of this century. That's why we are a strong supporter of the Shanghai Expo and a sponsor of the USA Pavilion," he noted.

"Furthermore, I assured the Chinese leadership that we will continue to oppose protectionism in all its forms at home and abroad, and believe the U.S. market should remain open to Chinese products, investments, ideas, and talent. But we need concrete action to help ensure that protectionist voices do not prevail in the United States Congress," Donohue said.

The U.S. Chamber of Commerce is the world's largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

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