American business leaders in China appealed to both governments to promote freer trade and reject protectionism amid slowing U.S. economic growth and a widening trade gap. In its annual report on business conditions, the American Chambers of Commerce for China, Shanghai and South China jointly rejected calls by some in the United States for punitive measures against China. The groups also called on Beijing to repeal rules that limit foreign investment and competition. "Defending and preserving the openness of the trade relationship should be a core commitment of both the U.S. and Chinese governments," James Zimmerman, chairman of the American Chamber of Commerce in China, said at a news conference Monday. "With slowing economic growth in the U.S., the focus needs to be on enhancing America's overall competitiveness rather than seeking defensive protectionist solutions." The American business groups plan to send a joint 40-member delegation to Washington in May to deliver their report to key lawmakers. Zimmerman said they also hope to meet with the presidential candidates or their aides.
The new report says that U.S. companies in China are facing sharply rising costs in China and higher barriers to imports and investment. But 70 percent of the 800 American companies surveyed by the chambers said they made a profit in China in 2007, and many of those companies said China is a key market. Some 64 percent of those companies said their five-year outlook for China was optimistic. According to the report, “Chinese protectionism” was the leading challenge faced by 17 percent of U.S. companies in China. The U.S. trade deficit with China in February was $18.4 billion, down 9.6 percent from the same month a year ago but the biggest U.S. gap with any country.
Journal of Commerce
