Focus: Anniversaries
Susan C. Schwab
United States Trade Representative
This year marks the 30th anniversary of China's free-market economic reforms and the 35th anniversary of the founding of the US-China Business Council (USCBC). In three brief decades, these economic reforms have fundamentally transformed China and laid the foundations for its emergence as a key player in the global economy. During this period of dramatic change, the USCBC and its members have played major roles in expanding US-China trade, maintaining stable economic ties during times of political turbulence, urging China's accession to the World Trade Organization (WTO), working to secure congressional approval of permanent Normal Trade Relations status for China, and serving as a voice for respect and improved understanding.
Since China joined the WTO, US-China trade has grown dramatically. China is now America's third-largest trading partner, our fastest-growing major export market, and the fourth-largest customer in the world for American farm exports. The sweeping reforms required by WTO membership have opened vast new opportunities for American manufacturers, farmers, workers, and service providers. For the most part, China has implemented its WTO commitments and taken seriously the obligations of membership in the world's preeminent multilateral trade institution. And the Chinese economy and its people have enjoyed significant benefits as a result.
Challenges, however, surely lie ahead. Times of economic turmoil can lead to resurgent voices of protectionism and economic nationalism. In both the United States and China, there are those who question the value of expanded two-way trade or see advantage in closing markets to foreign products, services, and investors. History shows clearly that open, rules-based international trade contributes to prosperity, strengthens the rule of law, and enhances respect for international norms, including the human rights that Americans have always stood for. From the beginning of time, trade across borders has served as a mechanism for increased contact between different peoples and increased respect and understanding between cultures and nations. For China—or the United States—to step backward into economic nationalism, industrial policymaking, and agricultural protectionism could only risk a worldwide backlash against its exports and the loss of a major foundation of future economic growth and stability. Both governments have been well served by the periodic reminders to this effect from the USCBC.
The Bush administration's China trade policy has been built on three key pillars. We have pursued high-level bilateral and regional dialogue with senior PRC officials through the Strategic Economic Dialogue, Joint Commission on Commerce and Trade, APEC, and other forums. We have sought to work with China to bring about an ambitious Doha Round and to underscore China's stake in a strong and vibrant multilateral WTO system. And where China has failed to implement its WTO commitments or put up protectionist barriers to US goods, services, or farm products, we have not hesitated to enforce our rights by aggressively challenging such measures under the WTO's dispute settlement mechanism. I believe time will show the wisdom of our approach.
I applaud the USCBC for its many contributions to US-China trade and economic relations, and I know we and our successors will be able to turn to you whenever leadership and quality advice from the American business community are needed in the days and years ahead.
Copyright 2008 US-China Business Council
Top of Page
Table of Contents
