The United States and China held the fifth Strategic Economic Dialogue (SED) at the Beijing Diaoyutai Guest House December 4-5, 2008. As special representatives of President George W. Bush and President Hu Jintao, Treasury Secretary Henry M Paulson, Jr. and Vice Premier Wang Qishan served as co-chairmen of the SED.

Senator Max Baucus (D.-Mont.), Chairman of the Senate Finance Committee, congratulated Treasury Secretary Henry Paulson, U.S. Trade Representative Susan Schwab, and Chinese Vice Premier Wang Qishan on the conclusion of the SED, and called for an improved and continued high-level engagement with China in the Obama Administration.

“The five rounds of the SED have endured through a major import safety crisis, political change in both countries, and now a historic global financial crisis. I urge President-elect Obama to continue high-level dialogue with China and to find ways to make the discussions more productive. A better dialogue will be one that can aim for long-term goals while clearing up real irritants that hurt our exporters today. A better dialogue will be one that addresses agriculture trade problems, like China’s beef ban, as well as goods and services trade,” said Baucus. “At this time of  unpredictability in our world, high-level engagement with China must be a constant.”

Discussions at the fifth SED meeting led to a number of results in areas of strategic importance that strengthen and deepen the bilateral economic relationship, including:

I: Macroeconomic Cooperation & Financial Services

The United States and China agree to continue their close communication on systemically significant macroeconomic policies, and reaffirm their commitment to continue to take material measures as necessary to maintain financial market stability, promote sustained global growth, and continue their cooperation on issues related to global economic and financial stability, and consider ways to further enhance the exchange of information on regulatory issues. In this regard, the United States and China took the following actions and made the following commitments:

• China will allow foreign incorporated banks in China to trade bonds in the inter-bank market, both for their customers or their own accounts, on the same basis as Chinese-invested banks, and, in exceptional circumstances, allow qualified foreign banks to increase their liquidity either through guarantees or foreign currency loans from overseas affiliates on a temporary basis, notwithstanding short-term external debt quotas.
• The United States reaffirmed that it welcomes foreign investment, including in its financial sector and commercially-oriented investments made through China’s foreign exchange reserves and sovereign wealth fund, and its commitments to: (1) the open and non-discriminatory principles for recipients of sovereign wealth fund investment identified by the Organization for Economic Cooperation and Development; (2) apply the same regulatory standards to all applications made by Chinese banks, securities and fund management companies, as they apply to U.S. or other foreign financial institutions in like circumstances; (3) process expeditiously Chinese financial institutions’ applications and (4) ensure that the Committee on Foreign Investment in the United States (CFIUS) process accords consistent and fair treatment of all foreign investment without prejudice to the place of origin.
• The United States and China welcome the recent approval of Industrial and Commercial Bank of China’s application to establish a U.S. bank branch, the announcement that China’s Industrial Bank will adopt the Equator Principles, and discussions and continued work on cooperation between relevant authorities on cross border auditor oversight, and agree to expand existing cooperation on risk management practices for agriculture insurance, and conduct technical cooperation on preferential tax treatment of defined contribution pension plans.

II: Cooperation on Energy and Environment

The United States and China agree to continue their close communication and extensive collaboration in addressing the challenges of environmental sustainability, climate change, and energy security. In this regard, the United States and China took the following actions and made the following commitments:

• The United States and China announced consensus on action plans for each of the five goals under the Ten Year Energy and Environment Cooperation Framework (TYF), including: Clean, Efficient and Secure Electricity Production and Transmission; Clean Water; Clean Air; Clean and Efficient Transportation; and Conservation of Forests and Wetlands Ecosystems. The United States and China also announced the establishment of an Energy Efficiency goal, with the aim of completing the action plan by the next meeting of the Ten Year Framework Steering Committee.
• The United States and China signed the EcoPartnerships Framework under the Ten Year Framework. Statements of Intent for implementation of each EcoPartnership were signed between the following EcoPartners from the United States and China: Energy Future Holdings and Huadian Power (clean energy generation); Denver, Colorado and Chongqing (electric and plug-in hybrid vehicles); Wichita, Kansas and Wuxi, Jiangsu (clean water and air); Floating Windfarms and Caofeidian (wind energy); Port of Seattle and Dalian Port (”green” ports); Greensburg, Kansas and Mianzhu, Sichuan (post-disaster “green” reconstruction); and Tulane University and East China Normal University (wetlands research).
• China notes U.S. support for China to join the International Energy Agency (IEA) as a non-OECD member and China intends to maintain a good cooperative relationship with the IEA and further enhance their dialogue and cooperation.
• The United States and China signed two memorandums of understanding (MOU) on energy conservation and environmental protection and clean water cooperation. Under the first MOU, the two sides will jointly support public private partnerships to address deficiencies in energy efficiency in Chinese enterprises. Among other things, USTDA and NDRC will jointly work to expand capacity within the Chinese national and provincial governments, and within industry, on conducting energy efficiency audits to promote pollution reduction and energy efficient enterprises. Under the framework of the above-mentioned MOU, both sides will jointly organize trade facilitation activities. The second MOU will establish a partnership to leverage U.S. private sector expertise and resources in support of the TYF Clean Water Action Plan.
• The United States and China agreed to co-sponsor a sustainable forest management and forest rehabilitation training workshop before June 2009, under the Asia-Pacific Network for Sustainable Forest Management and Rehabilitation (APFNet); and agreed to jointly support a pilot project on wood charcoal alternatives in Central Africa.
• The United States and China agreed to support their efforts in combating illegal logging and associated trade by exchanging data including import and export data on wood and wood products bilaterally and review expanding the scope after a year; to continue to enhance our shared understanding of “illegal logging” and explore its practical applications; and to co-host an international workshop on “Policies on Trade in Timber and Timber Products” in December 2008.
• The United States and China agreed to enhance marine cooperation including data sharing/exchange and joint strategies concerning sea-air interaction and climate change, ecosystem-based management, marine conservation, ocean governance, and coastal resiliency. They also agree to convene in 2009 the Joint Working Group on the Protocol on Marine and Fishery Science and Technology Cooperation.
• The United States and China will strengthen their cooperation in addressing the mercury issue, building upon their cooperation under the United Nations Environment Program’s Global Mercury Partnership.
• The United States and China agreed to continue technology cooperation on disaster prevention under the Framework of U.S.-China Joint Commission Meeting on Science and Technological Cooperation.

III: Trade and Investment

Against the background of deteriorating economic conditions worldwide, the United States and China highlighted the importance of and their shared commitment to fighting protectionism and promoting open trade and investment. To this end, both countries:

• Held the second U.S.-China Investment Forum and exchanged views on how to create the conditions that will increase investment between our countries; agreed that Forum discussions were valuable to the bilateral investment relationship and should be continued.
• Jointly convened the first meeting of the Transportation Forum and signed a Joint Statement that included a commitment to establish working groups on new technologies in transport, urban congestion, innovative financing, transport of hazardous goods and disaster assistance coordination. These working groups will meet in the upcoming year to assess goals and objectives for the 2nd Transportation Forum.
• Conducted a joint Experts Dialogue on rules of origin issues, and agreed to hold another such Dialogue before the next SED to guide future cooperation.
• Jointly held the second U.S.-China Innovation Conference and will continue innovation cooperation and related initiativeswhile coordinating with the work of the U.S.-China Joint Commission Meeting on Science and Technology (JCM).
• Held three productive rounds of bilateral investment treaty negotiations. Our shared objective is to achieve an agreement of mutual benefit that facilitates and protects investment and enhances transparency and predictability for investors of both countries.
• Signed a Protocol on Cooperation in the fields of Metrology, Standards and Conformity Assessment.

 IV: Food and Product Safety

Recognizing the vital importance of consumer product safety to bilateral trade and striving to safeguard consumers of both countries, the United States and China agreed to build upon the concrete progress made at SED III and SED IV in this area by enhancing dialogue and cooperation, improving information exchange, organizing technical training, and strengthening capacity to jointly address emergencies. To this end, both countries:

• Agreed to review our implementation of existing bilateral agreements, identify any gaps in performance, and prepare a corresponding progress report in advance of the next SED.
• Agreed that the U.S. Consumer Product Safety Commission will continue to consider in accordance with its procedures Chinese comments regarding the implementation rules of the 2008 U.S. Consumer Product Safety Improvement Act.
• Agreed to further promote implementation of the bilateral agreement on Food and Feed Safety.
• Agreed to further promote implementation of the MOU on Food Safety Information Notification to strengthen bilateral cooperation, jointly address emergencies, effectively protect consumers of both countries and promote the healthy development of bilateral trade.
• Agreed to participate in activities and capacity building of international organizations like the World Organization for Animal Health, International Plant Protection Convention, and Codex Alimentarius.
• Established a cooperation committee or working group on traditional Chinese medicine and identified the first round of cooperation projects. The alternatives to the use of endangered wildlife and derivative products in Traditional Chinese Medicine will be included on the agenda of this working group.

V: International Economic Cooperation

Following the cooperative spirit of discussions on international economic cooperation at the Summit on Financial Market and World Economy on November 15 in Washington, D.C. , the United States and China discussed ways to best utilize international financial institutions and economic organizations to promote global growth and stability, and to improve our capacity to jointly promote global economic development including tackling the challenges of food security, public health and poverty alleviation. Both sides:

• Agree that representation in international financial institutions should be adjusted to reflect better changing economic weights in the world economy.
• Support extending membership in the Financial Stability Forum to China and other important emerging market economies.
• Agree to support the Asia Pacific Economic Cooperation (APEC) forum’s ongoing work to expand the institutional investor base to encourage and promote capital market development in the APEC region.
• To maintain U.S. and Chinese trade, including with emerging and developing economies in the current difficult financial conditions, the United States Export-Import Bank and the Export-Import Bank of China agreed to make available additional resources for trade financing facilities. The U.S. Export-Import Bank is prepared to provide additional resources of $12 billion, and the Export-Import Bank of China is prepared to provide additional resources of up to $8 billion, if needed to assist in the financing of the export of U.S. and Chinese goods and services.

Both sides are satisfied with the positive achievements made over the course of five rounds of formal dialogue since the launch of the SED in September 2006.

In reviewing the SED process, the U.S. participants believe that cooperation with China is the foundation of a sustained and healthy bilateral relationship, which is vital to the economic futures of both countries and the global economy. Building on existing collaborative mechanisms, the SED has created constructive new ways to identify areas of mutual benefit and produce tangible results that advance simultaneously China’s reform agenda and U.S. economic interests.

The Chinese participants view the SED as an important platform to enhance mutual strategic trust and strengthen mutually beneficial economic cooperation, which is a building block for strengthened and enduring U.S.-China relations. Our close and frequent communication and cooperation in jointly confronting challenges in global financial markets is a concrete example of the value and effectiveness of the SED.

The SED process has achieved mutual benefits that can only arise through consistent, candid dialogue and consultation. It has become an effective framework for resolving differences and addressing challenges arising from fast-moving bilateral trade and investment issues, thereby advancing the fundamental interests of our countries and peoples.

U.S. Treasury Secretary Henry M. Paulson, Jr. will lead a U.S. delegation to China for the meeting of the U.S.-China Strategic Economic Dialogue (SED). The talks will take place December 4–5, 2008 in Beijing.

Secretary Paulson will be joined by Agriculture Secretary Ed Schafer, Labor Secretary Elaine Chao, Health and Human Services Secretary Mike Leavitt, Office of Management and Budget Director Jim Nussle, U.S. Trade Representative Susan Schwab, EPA Administrator Stephen Johnson, and other Administration officials.

The fifth Cabinet-level meeting of the SED will focus on strategies for managing macroeconomic risks and promoting balanced economic growth, strengthening cooperation in energy and environment, confronting the challenges to trade, promoting open investment environments, and furthering international economic cooperation. The dialogue was launched by President Bush and President Hu in September 2006.

For more information on the SED meeting, visit the Treasury Department’s Web site.

The United States and China concluded the third Cabinet-level meeting of the Strategic Economic Dialogue (SED) today. U.S. President George W. Bush and China’s President Hu Jintao established the SED to create a Cabinet-level forum to articulate long-term objectives while managing short-term challenges in the economic relationship between both countries. During the meeting, held December 12–13, 2007 at Grand Epoch City near Beijing, six U.S. Cabinet officials and agency heads joined U.S. Treasury Secretary Henry M. Paulson, Jr. for discussions with China’s Vice Premier Wu Yi and a delegation of 14 Chinese ministers and agency heads.

Secretary Paulson commented on the accomplishments of the meetings, saying, “We have had substantive, robust and engaging exchanges on a range of issues important to both our nations including the integrity of trade, balanced growth including financial services, energy security and environmental sustainability, and bilateral investment.”

He continued, “The quality of our discussions has improved over the last year, as we have all come to know one another better. By building closer relationships we have clarified perceptions and increased understanding, which is vital to keeping our economic relationship on an even keel.”

Discussions at the third SED led to a number of results aimed at strengthening the two nations’ bilateral economic relationship.

Product Quality and Food Safety

The United States and China committed to expand their dialogue and information-sharing to enhance the infrastructure of laws, policies, programs and incentives that allow for effective government oversight of exports of food, drugs, medical products, and consumer goods. To this end, the two countries signed memoranda in eight areas intended to improve the safety of exports:

• Food and feed: A memorandum of agreement between the U.S. Department of Health and Human Services (HHS) and China’s General Administration of Quality Supervision, Inspection, and Quarantine (AQSIQ), signed on December 11, 2007. China agreed to allow six U.S. pork processing facilities to resume exports to China. China agreed to remove “contract value” requirements from draft agricultural licensing regulations that would have required U.S. farmers and agricultural exporters to disclose confidential business information. China agreed to eliminate the requirement to submit viable biotech seeds for testing, which should reduce the possibility of illegal copying of patented agricultural materials.

• Drugs and medical products: An agreement between the U.S. Department of Health and Human Services (HHS) and China’s State Food and Drug Administration (SFDA), was signed on December 11, 2007. China agreed to take action to eliminate remaining redundancies in its testing and certification requirements for imported medical devices and committed to implement a “one test, one fee” policy, establishing a single conformity assessment system for medical device testing. China also agreed to suspend implementation of AQSIQ Decree 95, a regulation that would have required additional testing and inspection targeted exclusively at imported medical devices. The U.S. medical device industry estimates it exported $713 million in medical devices to China, and that the costs of testing redundancies are in the tens of millions of dollars.

• Environmentally compliant exports/imports: The U.S. Departments of Energy (DOE) and Agriculture (USDA) and China’s National Development and Reform Commission (NDRC) agreed to strengthen and expand cooperation on biofuel production and use by signing a memorandum of understanding (MOU) with the ultimate goal of significantly reducing fossil fuel consumption by increasing the use of clean, renewable fuels such as those derived from biomass. U.S. Deputy Secretary of Energy Clay Sell signed the MOU with NDRC Vice Chairman Zhang Xiaoqiang. Sell was pleased with the MOU. “As the two largest energy consumers and automobile markets in the world, we are eager to strengthen cooperation with China to increase the use of renewable and alternative fuels to power our nation’s vehicles,” he said. “The United States and China face similar challenges to meet rapidly increasing energy demand and through our joint efforts, we are partnering to maximize our nation’s resources and expertise as well as increase energy security, confront climate change and promote economic growth.”

• Food safety: The U.S. Department of Agriculture (USDA) and China’s AQSIQ have agreed to upgrade their food safety memorandum of cooperation to ministerial-level.

• Alcohol and tobacco products: A memorandum of understanding between the U.S. Department of the Treasury and China’s AQSIQ, was signed on December 11.

• Additional areas: Toys, fireworks, lighters, and electrical products, motor vehicle safety, and pesticide tolerance and trade were also discussed.

Financial Services

China agreed to announce before SED IV that the China Securities Regulatory Commission (CSRC) will conduct a careful assessment on foreign participation in China’s securities firms and its influence on China’s securities market. Based on the results of its assessment, China has pledged to make a policy recommendation on the issue of adjusting foreign equity participation in China’s securities firms. The China Banking Regulatory Commission (CBRC) is currently conducting a scientific study of foreign participation in China’s banking sector that will be completed by December 31, 2008. By that time, based on the policy assessment’s conclusions, the CBRC is to make policy recommendations on foreign equity participation. China has agreed to allow, in accordance with relevant prudential regulations, qualified foreign-invested companies, including banks, to issue RMB denominated stocks; qualified listed companies to issue RMB denominated corporate bonds; and qualified incorporated foreign banks to issue RMB denominated financial bonds.

The two nations welcomed the recently approved application by China Merchants Bank to establish a branch in the United States. The U.S. government remains committed to apply national treatment to Chinese banks, confirm that applications by Chinese banks will be evaluated consistent with the principle of national treatment, and applies the same prudential standards to all applications by foreign banks to establish branches or subsidiaries or to acquire stakes in existing U.S. banking institutions. The United States noted China’s request that the relevant U.S. regulators process expeditiously the applications of Chinese banks according to relevant regulations and procedures. The U.S. government also stated its commitment to apply national treatment to Chinese broker-dealers and investment advisers seeking to register and operate in the United States. The China Banking Regulatory Commission (CBRC) and the U.S. Securities and Exchange Commission (SEC) have agreed in principle that the signing of an exchange of letters will be done in the near future on information sharing in connection with the cross border activity of financial institutions licensed by either the CBRC or SEC.

Energy and Environment

The United States and China signed a memorandum of understanding strengthening cooperation in the area of biomass resources conversion for fuel, and negotiated a memorandum of understanding to cooperate on combating illegal logging and associated trade in order to promote sustainable forest management. China will develop and implement a nationwide program on SO₂ emission trading in the power sector, and the United States will provide technical assistance for this program, as well as for basic water management programs and for adopting clean fuels and vehicle policies. The United States and China reaffirmed a commitment “to reduce, or as appropriate, eliminate tariffs and non-tariff barriers to environmental goods and services” in the WTO.

Transparency

The United States and China agreed to build upon their international obligations on transparency, including their APEC and WTO commitments. Each country has committed that it will:

• When possible, publish in advance any measure covered by its WTO obligations that are proposed for adoption, and provide where applicable interested persons a reasonable opportunity to comment on such proposed measures. Each country may comply with this obligation by regularly publishing such proposed measures in its designated official journal or by posting and permanently maintaining these measures on an official website;

• Publish in its designated official journal any final measure covered by its WTO obligations before implementation or enforcement.

Rebalancing Growth

Both the United States and China committed to communicate on measures to address U.S.-China economic imbalances through dialogue and consultation, including discussions under the U.S.-China Joint Economic Committee. Both sides agreed to put great emphasis on opposing trade and investment protectionism. On December 13 and 14, 2007, Chinese Customs and U.S. Customs and Border Protection officials will hold technical discussions to agree on the joint validation procedure of the Customs-Trade Partnership Against Terrorism (C-TPAT) pilot project in China, which is expected to begin in early January 2008, with joint validations led by China Customs and technical input provided by U.S. Customs and Border Protection.

Innovation

The United States and China co-hosted an Innovation Conference on December 10, 2007, in Beijing. The two sides agreed to sustain dialogue, jointly host public-private innovation discussions, and pursue other cooperation as outlined in the SED III Innovation Conference Outcomes document.

Looking Forward

During the next 6 months, the two countries will:

• Further intensify dialogue and exchanges in the areas of product and consumer safety, including food, feed, and drug and medical products, through new and existing bilateral cooperation mechanisms.

• Conduct extensive cooperation over a ten-year period that will address energy and the environment. This ten year collaboration will advance technological innovation, adoption of highly-efficient, clean energy technology and technology in addressing climate change, and promote the sustainability of natural resources. We will establish a working group in order to start planning as soon as possible.

• Meet early next year and work together to jointly promote the negotiation in the WTO on the reduction or, as appropriate, the elimination of tariffs and non-tariff barriers to environmental goods and services to achieve results as soon as possible, recognizing the urgency of environmental challenges.

• Expand cooperation on development of a detailed plan to gradually reduce the sulfur content in fuels to 50 ppm or lower and introduce corresponding advanced vehicle pollution control technology, for incorporation into China’s 12th Five Year Plan. Strengthen cooperation on construction and management of strategic oil stocks through the exchanges of information and technologies, as well as training, including cooperation with the International Energy Agency.

• Begin a high-level exchange of investment policies, practices, and climates. Intensify ongoing discussions regarding the prospects for negotiating a Bilateral Investment Treaty. Continue consultations in a cooperative manner on China achieving market economy status. Continue cooperation through the JCCT High Technology and Strategic Trade Working Group by positively implementing “Guidelines for U.S.-China High Technology and Strategic Trade Development” and taking appropriate constructive measures and working out an action plan to expand and facilitate bilateral high-tech and strategic trade. Relevant departments of the two sides have agreed to meet or hold a digital video conference (DVC) in the field of rules of origin. “These Guidelines are a positive step forward for bilateral, civilian high technology trade,” said Secretary of Commerce Carlos M. Gutierrez. “The Guidelines recognize China’s status as the fastest growing export market for U.S. exports and memorialize our respective commitments to communicate and cooperate, through such forums as the JCCT, to promote the development of safe, secure high technology and strategic trade between our two countries.”

• Explore the scope of respective international obligations on transparency. Continue to exchange information on reviewing and responding to comments received during the rulemaking process. Establish a communication mechanism to exchange information regularly on the conditions, procedures and timeframes for granting administrative licenses in areas of the Chinese market of interest to the United States and areas of the U.S. market to China.

The fourth SED will be held in Washington in June 2008.

JCCT Results

The 18th U.S.-China Joint Commission on Commerce and Trade (JCCT) also convened this week in Beijing, China. In addition to the issues mentioned above, U.S. Commerce Secretary Carlos M. Gutierrez and U.S. Trade Representative Susan C. Schwab, together with Chinese Vice Premier Wu Yi, held discussions on several topics.

Intellectual Property Rights

China reported on steps it had taken since the previous JCCT in April 2006 to improve protection of intellectual property rights, including accession to the World Intellectual Property Organization (WIPO) Internet treaties, a crackdown on the sale of computers not pre-loaded with legitimate software, enforcement efforts against counterfeit textbooks and teaching materials, and joint enforcement raids conducted by the U.S. Federal Bureau of Investigation and Chinese security agencies.

China and the United States agreed to exchange information on customs seizures of counterfeit goods in order to further focus China’s enforcement resources on companies exporting such goods. In 2006, 81% of seizures by U.S. Customs and Border Protection of counterfeit goods are from China.

China also agreed to strengthen enforcement of laws against company name misuse, a practice in which some Chinese companies have registered legitimate U.S. trademarks and trade names without legal authority to do so. The two sides plan to cooperate on case-by-case enforcement against such company name misuse.

Telecommunications

China confirmed that it will lower the registered capital requirements for U.S. telecommunications service providers to operate in China.

Government Procurement Agreement (GPA)

China confirmed that it will submit, by the end of 2007, its initial offer on Chinese government agencies that will be covered by the WTO Government Procurement Agreement. China’s joining the GPA would provide American companies access to a $35 billion per year government procurement market.

Aircraft Financing

China committed to join the Cape Town Convention on International Interests in Mobile Equipment and the Protocol on Matters Specific to Aircraft Equipment, which should reduce the financial risk of cross-border aircraft financing, making it easier for U.S. aircraft and aircraft parts manufacturers to sell products in China.

Ensuring Open and Non-discriminatory Investment Regime

China reiterated its commitment to open investment and competition policies, and to the principle of non-discrimination in investment regulation. The two sides also agreed to investment-related discussions in the U.S.-China Legal Exchange to address specific U.S. concerns about implementation of the Anti-Monopoly Law and Mergers and Acquisitions regulations.

Issues Remain

Senate Finance Committee Chairman Max Baucus (D-Mont.) expressed strong disappointment over lack of progress in opening the Chinese market to U.S. beef during the JCCT, however. “My patience with China is running out on the beef issue,” said Baucus. “While there are many complexities in U.S.-China ties, opening China to U.S. beef is pretty straightforward. The world’s scientists and consumers agree that American beef is safe and second to none. I find it hard to understand why the JCCT talks made no progress on beef, especially in light of previous commitments made by China on this issue.”

During the April 2006 JCCT meeting, China committed to open its market to American beef and beef products; in May 2007, it pledged to open its market to U.S. boneless and bone-in beef from cattle younger than 30 months of age. Since that time, the World Animal Health Organization (OIE) has certified the safety of all U.S. beef, bone-in and boneless, regardless of age.

Baucus and Finance Committee Ranking Republican Member Chuck Grassley (R-Iowa) wrote to Treasury Secretary Henry Paulson, Commerce Secretary Carlos Gutierrez, and United States Trade Representative Susan Schwab on December 7, outlining expectations for the JCCT and SED. A copy of the letter is available online.

Also, on December 11, while talks were occurring, Cong. Phil English (R-Pa.) urged House Ways and Means Committee Chairman Charles B. Rangel (D-N.Y.) to address current U.S.-China trade challenges and act on China trade legislation before the Congress concludes the first session of the 110th Congress.

“Blatant intellectual property theft, rampant subsidies and prolific dumping plague the bilateral relationship and eviscerate any chance for America’s employers o compete on a level playing field,” wrote English, a senior member of the House Ways and Means Committee. “The sector of our economy most in crosshairs of China’s mercantilist trade practices is the American manufacturing base.”

In his letter, English called on Chairman Rangel to move forward with China trade legislation to effectively deal with China-related issues, including subsidies, intellectual property rights and exchange rate practices. In addition, English urged the Chairman to act on trade measures that would strengthen U.S. trade remedy laws.

“Now, almost a full year into the Democratic Majority’s tenure, the Committee on Ways and Means has yet to move a bill out of Committee to deal with the CVD/NME issue or any other pressing China related trade issues,” he wrote. “Compounding this worrisome fact is that a number of CVD cases involving NMEs are pending and will soon reach final determinations. Inaction by Congress to remove ambiguities in the law could negatively impact these domestic employers as they seek to redress illegal trade by miring them in post-case litigation.”