EVANS CALLS ON CHINA FOR RESULTS IN TRADE RELATIONSHIP

Beijing, China - U.S. Commerce Secretary Donald L. Evans today praised China for progress that has been made in advancing U.S.-China trade relations, but strongly warned that China must to do more in fulfilling its promises to remove obstacles that stand in the way of further strengthening economic ties with the United States. Evans delivered his remarks to the AMCHAM/U.S. China Business Council.

“For those of us in the United States who are motivated by a vision of increased peace, prosperity, and stability in the world that we believe this relationship will continue to produce, we need demonstrated results from the Chinese leadership,” said Evans.

“Our trading relationships add enormous value to America’s economy and to our partners around the world,” said Evans. “Our markets are open because we believe that competition creates excellence within our economy. We willingly compete with countries around the world and ask only that trade take place on even terms. All we want is a level playing field.”

Evans praised China for the steps they have taken in strengthening the U.S.-China trade relations including becoming America’s fastest growing export market, providing important help on international security issues, progress made toward satisfying their WTO commitments, the increased number of Chinese companies that are investing in the United States, achieving productive cooperation through the U.S.-China Joint Commission on Commerce and Trade (JCCT), and the reaching of an agreement on the WAPI standard.

However, Evans pointed to a number of critical areas where more work must be done in order for China to earn Market Economy Status which include moving to a flexible, market-based exchange rate, cracking down on piracy and counterfeiting, more progress in adopting a stronger and more transparent rule of law and addressing market access issues that were agreed to as part of China’s accession into the WTO.

“Countries aspiring to be treated as market economies must end government intervention and allow market forces to drive their economies,” said Evans.

Evans continued, “Underpinning all of the needed reforms in China is the need to adopt a stronger and more transparent rule of law. China has made substantial progress in this area but more reform and additional resources for enforcement are necessary.

Evans concluded his remarks by reiterating the Bush Administration’s continued commitment to fostering the U.S.-China trade relationship.

“We look forward to developing a higher standard of economic cooperation with China that can level the playing field,” said Evans. “It is strongly in the interests of both countries to build a relationship that is stable, sustainable, and the source of greater peace and prosperity.”