US panel calls for punitive tariffs on Chinese goods

14 November 2005 00:01  [Source: ICB Americas]

THE US-CHINA Economic & Security Review Commission (USCC) is calling for “immediate, across-the-board tariffs on Chinese imports” to halt Chinese violations of US companies’ intellectual property rights (IPR).

The USCC charged in its annual report that China is not living up to IPR and other obligations necessary for China’s admission to the World Trade Organization (WTO). The USCC said China’s failures to enforce IPR rules and currency manipulations are undermining US economic interests and technological security.

The commission, chartered by Congress in 2000 to monitor the national security implications of US-China economic relations, said that “a number of current trends in US-China relations have negative implications for US economic and national security interest.” 

In particular, the USCC cited “China’s continuing failure to meet the requisite standards of effective IPR enforcement.”

The USCC also singled out China’s currency policies, charging that China is keeping the renminbi (RMB) undervalued. The commission said China’s move this year to allow the RMB to appreciate by 2 percent against the US dollar still leaves the Chinese currency “highly undervalued.” USCC said China should take immediate steps to appreciate the RMB “by at least 25 percent” against the US dollar or a transparent, trade-weighted basket of international currencies.

If China does not act immediately to remedy its currency and IPR shortcomings, said the USCC, “Congress should impose an immediate, across-the-board tariff on Chinese imports at the level necessary to gain prompt action by China.”

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly