What China Wants from America in a Nutshell

♠ Posted by Emmanuel in at 5/27/2010 12:07:00 AM
I just wanted to post this quickly. From the just-concluded US-China Strategic and Economic Dialogue, Chinese Vice-Premier Wang Qishan tabled three requests the PRC is most keen on from the US, economically speaking. If you need more background information, I have posted on these at greater length:
  1. Export restrictions deal with American companies being prohibited from exporting to China goods that can be "dual use"--civilian or military. However, there is a complementary issue of Western nations seeking an unhindered flow from China of rare earth metals--materials used in making high-technology goods;
  2. To reverse a sad history of Chinese private sector investment in America being discouraged over dubious security grounds;
  3. When China joined the WTO in 2001, one of the agreed preconditions was that it would be given market economy status only in 2016. Why is this important? It is easier to file antidumping claims against countries like China that are designated as non-market economies (and the US and to a lesser extent the EU). Since the extent of dumping is judged not by domestic prices (where there is supposedly not a functioning market) but by those in peer countries (where the selection of countries and valuations can greatly affect the duties applied), there is much leeway for complainants.
At any rate, here is what Wang said:
The Chinese Vice-Premier, Wang Qishan said, “China wants to see the United States make substantial commitments and concessions on the issues, such as relaxation of export restrictions, equal treatment on Chinese companies investing in the United States, as well as recognition of China's market economy status.”

He was speaking during the second round of the Sino-US strategic economic dialogue on May 24. “We are pleased to see the commitments proposed by the US that it will relax export restrictions and welcome Chinese enterprises to invest in the United States.