Washington: Terming China`s economic
policies as a "global concern", a powerful US Senator on Thursday
asked the Obama Administration to work with key trading
partners, including India, to meet the challenge.
"We must approach China`s economic policies as a
global concern, not just an American concern. China`s currency
misalignment, ineffective protection and enforcement of
intellectual property rights, and industrial policies such as
indigenous innovation hurt businesses around the world, not
just US businesses," Senator Max Baucus, Chairman of the
powerful Senate Finance Committee, said.
"We must work multilaterally with key trading partners
such as the European Union, Korea and India to make it clear
to China that the world is watching and is united in its
concern. We must effectively address the concerns through key
multilateral fora such as the G-8 and the G-20," he said in
his remarks at a Congressional hearing on China.
Treasury Secretary Timothy Geithner testified before
the Committee, wherein he too expressed concerns about China`s
economic policies, which he observed are hurting not only the
US but also the global economy.
Senator Charles Grassley, the Ranking Member of the
Committee said, "I have serious concerns about the direction
that China`s government is taking with respect to its economic
and trade policies."
He disagreed with Treasury Department`s decision in
April to delay issuance of its currency report. "The time is
long past for any Treasury Department to admit publicly what
everyone else already knows, namely that China is manipulating
the value of its currency in order to gain an unfair advantage
in international trade...every time we mention that, they say
we`re interfering in their internal affairs."
Grassley said China needs to grow up and know that in
a world of globalisation, it is not just economics that is
globalised. "Politics is globalised. And we ought to be able
to discuss these things without one country being incensed
because the other one brings something up. We`re all mature
"If China continues to refuse to make a serious offer
to join the government procurement agreement in the WTO, we
should take a harder look at our own procurement policies as
they apply to procurement goods and services from China.
"Separately, if China chooses to apply what they call
a national economic security test when it reviews foreign
investment through mergers and acquisitions, perhaps we should
do the same with respect to Chinese investment in the United
States," Grassley argued.
"The point is, if one of the major beneficiaries of
the world trading system engages in a pattern of refusing to
play by the same rules as everyone else, then we should
reconsider the rules that we apply to that country," he said.
Agreeing with the top two Senators, Geithner said: "We
need to make sure we give our economic interests appropriate
priority in the broader relationship.
"We need to make sure that we`re using the tools we
have multilaterally to protect our interests. And we need to
make sure we use the tools that we have in the United States
effectively to promote those interests."