STATEMENT FROM
COMMERCE SECRETARY DONALD L. EVANS
ON AMERICA’S ECONOMIC RELATIONSHIP
WITH CHINA
“The
tool that we have to press China to reform its labor standards
is the designation of China as a market economy under the U.S.
trade laws. As Secretary of Commerce, I’m charged with determining
whether or not China meets the definition of a market economy.
“We
all know that obtaining market economy status is a high priority
for the Chinese leadership. Without this status, China is subject
to more antidumping cases with higher duties on their imports.
“To
be designated a “market economy,” countries must meet
the six criteria spelled out by the Tariff Act of 1930. Labor
standards and currency are two of the six criteria. In other words,
China will be required to reform its labor standards and its currency
policies before it can be granted market economy status.
“Last
week, the U.S. and China agreed to an unprecedented dialogue to
tackle these issues head-on. We’ve established a Structural
Working Group so that China will hear, directly from me, exactly
what steps they must take to satisfy the law. And the law is clear:
China will fail to meet Market Economy status until market forces
set labor and currency rates.
Until
these reforms are made – and the statutory criteria are
met - China will continue to be considered a non-market economy
under U.S. anti-dumping law, and American companies alleging unfair
trade practices are generally more likely to be successful.
“But
our goal isn’t to impose dumping actions. We’re not
about petitions--we’re about results. Our goal is to ensure
that American companies compete on a level playing field.
Promoting
economic engagement--not economic isolation--is the best way to
raise labor standards and living standards in China.
“As
Secretary of Commerce, I’m also focused on expanding U.S.
exports to China, our fastest growing market. And we’ve
seen tremendous results. Our exports to China have grown 76% during
this Administration. During the first two months of 2004, exports
to China are up 39% year-over-year. That means good, high-paying
American jobs depend on trade with China. But the rapid progress
in our export promotion efforts within the Chinese market would
be jeopardized by a blunt instrument like this petition.
“Let’s
continue to use the most effective tools at our disposal-the bilateral
dialogue with the Chinese on market economy status at the Structural
Working Group-to leverage change in China. Here’s the bottom
line: Until market forces set economic decisions – including
labor and currency rates, China will remain a non-market economy.”