US to take action against China's trade habits
US trade officials have begun steps to begin talks with Beijing over trade gaps and inconsistencies.
U.S. Commerce Secretary Carlos Gutierrez and Trade Representative Rob Portman are expected to press
China to revalue the yuan, combat product piracy to help curb the swelling trade deficit particularly with regard to textiles and steel exports.
In the first four months of 2005, Chinese steel exports tripled while its imports actually declined.
Mounting pressure from Congress has propelled the Bush Administration to send Gutierrez to Beijing for talks on June 2 while Portman will meet with Chinese Commerce Minister Bo Xilai on
Koreas Jeju Island and may then proceed on to Beijing thereafter.
Recently, the USs trade deficit has ballooned to $162 billion in 2004 and seen an expansion of almost 40% in the first quarter of this year.
The US finds itself in a precarious situation. While it needs
China to cooperate on the trade issues for its own economic benefit, much is also riding on its dependence on
China to police terrorism and keep North
Korea in check.
With Chinese/US relations strained, the next few days of negotiations are expected to be difficult. Observers are pessimistic that Beijing will give much ground.