Concern over China protectionism at 10 yr high -U.S. Chamber

SHANGHAI, May 24 (BestGrowthStock) – Concern among U.S. companies
that China is backtracking on opening its economy are at a
10-year high, the head of the U.S. Chamber of Commerce said on
Monday.

Chamber President and Chief Executive Thomas Donohue said
companies from the United States were growing increasingly
worried about investing in China because of uncertainty over
future industrial policy measures.

“This concern is, are we going to have a level playing field?
What they (U.S. companies) are troubled and what we are therefore
talking about are the industrial and indigenous innovation
policies,” Donohue said in a speech in Shanghai.

Donohue said the argument that China was a developing country
and therefore entitled to certain policies that developed
countries were not, did not always hold true.

“We advise the Chinese leadership that our companies are
concerned about continuing investment operating restrictions.”

Earlier in May, Donohue gave a more vocal speech in
Washington, where he said China was using industrial policies to
foster national champions by promoting the transfer of technology
and innovative capacity domestically.

During his speech in Shanghai, Donohue’s rhetoric expressed
concern over China’s indigenous policies but said the mainland
had been making great progress compared with many other
countries.

“Most critical in Washington and Beijing is not to waver on
the commitment to open markets and the need to move forward all
the time on building this relationship,” Donohue said.

Both countries are meeting in Beijing for high-level talks
this week in an attempt to ease Sino-U.S. tensions, which have
escalated in recent months. The U.S. delegation is led by
Treasury Secretary Timothy Geithner and Secretary of State Hilary
Clinton.

Donohue said both countries needed to work together to
address global problems including North Korea, adding that he
hoped China could play a very helpful role in addressing the
issue.

Donohue briefly touched upon the yuan, another contentious
issue in Washington, saying the currency issue was very important
from a political point of view in the United States.

“It gives everybody an excuse to be China bashers. I am
hopeful that we will get some rational discussion on this.”

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Concern over China protectionism at 10 yr high -U.S. Chamber