17 November 2011 20:56 [Source: ICIS news]
By Joe Kamalick
WASHINGTON (ICIS)--A new report by a special US commission on China warns that fully ten years after it was granted entry to the World Trade Organisation (WTO), Beijing has largely failed to live up to its free trade obligations and instead has become more aggressive in its commercial, military and cyber developments.
In its tenth annual report, the congressionally chartered US-China Economic and Security Review Commission (USCC) said this week that China has taken only token steps to meet its WTO obligations and has even rolled back some of those modest open-trade steps in recent years.
In addition, said the commission, actions of the Beijing government across a wide range of commercial, military and diplomatic areas speak to “its excessive territorial claims” in East Asia and exhibit “an image of Chinese intentions that diverges significantly from Beijing’s official policy of peaceful development”.
The commission was established by the US Congress when in 2001 – over the objections of many in Congress and among other ?xml:namespace>
As part of the deal in being granted WTO membership,
But many in Congress were deeply suspicious of
In issuing the commission’s 400-page report, USCC chairman Bill Reinsch gave a decidedly negative report card.
He said that while
For example, “
“But US business software companies still report that China is the world’s largest source of pirated software [and] about 8 of 10 computers in China still run counterfeit operating system software.”
“Even more disturbing,
He charged that in 2009
“These policies, known as ‘indigenous innovation’, are intended to discriminate against foreign goods and services and to substitute domestic goods, apparently as a device to force the transfer of technology to Chinese firms,” Reinsch said.
“These policies, along with
In addition, he said, in recent years China has returned to relying on a system of state ownership and control of major sectors of its economy, directing a vast array of subsidies to favoured industries in order to nurture particular technologies behind protective barriers.
“This is contrary to the spirit, and in many cases the letter, of
Here too, the USCC identifies broad areas of concern.
“This year also marked several milestones for
“China has recently achieved several military ‘firsts’: it flight tested its first stealth fighter, conducted a sea trial of its first aircraft carrier, and made progress towards deploying the world’s first anti-ship ballistic missile,” he said.
“While all nations have the right to develop the means to defend themselves, the commission continues to be concerned with the opacity of
In particular, Reinsch said, the commission’s report “notes
Reinsch said that in addition to its military and cyber warfare advances,
All of which, he said, “presents an image of Chinese intentions that diverges significantly from
In other, perhaps less diplomatic words, while
“As a result of
“In the South China Sea, for example,
“Furthermore, newly acquired maritime security capabilities provide
He pointed out that over the past year, “
The USCC report was issued as President Barack Obama embarked on a week-long trip to various nations in
Significantly, Obama announced several military and naval arrangements and agreements with East Asian nations that can only be seen as moves to strengthen the
For the first time since World War II, the
Remarkably, only 36 years after the fall of Saigon, there is talk of an imminent agreement between the
To put it mildly, and with apologies to Bob Dylan, the times, they are a-changin’.
($1 = €0.74)
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