Today the US-China Business Council (USCBC) said that China has made important progress in opening-up its market since acceding to the World Trade Organization (WTO) in 2001, but still has many challenges left to address in order to achieve a fair and equitable market-place for foreign investors.
In written testimony to the interagency Trade Policy Staff Committee, USCBC stated that while China is often in compliance with the letter of its WTO commitments, it falls short of the spirit of the WTO in critical areas such as non-discrimination. These shortcomings create an unlevel playing field for many foreign companies seeking to enter and operate in China.
USCBC’s comments also highlight remaining challenges China must take-up, including creating tougher deterrents for intellectual property violations, and modifying and finalizing regulations in China’s government procurement system to create a fair market for both foreign and domestic companies.
Finally, USCBC notes that China has taken an important step in committing to negotiate the Bilateral Investment Treaty on a negative-list, pre-establishment basis, but the United States should seek meaningful reductions in foreign ownership barriers in all aspects of China’s economy.
USCBC looks forward to working with the US and Chinese governments to promote China’s compliance with its WTO commitments and reduce market barriers in China’s market.