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US biz community calls for lift of export control over China

(Xinhua)
Updated: 2009-04-27 23:46

BEIJING -- The US business community in China called for the US government to carry out a review and revision of "antiquated export control regulations" here on Monday.

"US export control policies do not adequately incorporate the realities of this global environment," said the 2009 White Paper on the State of American Business released by the American Chamber of Commerce in China (AmCham-China) the same day.

Related readings:  US to revise export control rules  China expresses concerns over US export control proposal  Chinese experts accuse US export control rule of spoiling high-tech trade  China to US: Ease high-tech export control

The paper said, "rigorous licensing procedures and the long list of controlled technologies concerning China have greatly increased the costs of doing business in China for US companies.

"They have also created the impression that China presents too many business risks and uncertainties, causing some US firms to shy away from exporting commercial items and technology to legitimate, civilian end users in China," it said.

"This unnecessarily hurts the American economy at a time when companies should be aggressively targeting the Chinese market."

According to the AmCham-China, two thirds of the US enterprises in China expect to directly or indirectly benefit from the country's four trillion RMB (US$584 billion) stimulus package.

"China remains a top investment priority of American businesses," said the paper.

It proposed several suggestions for the US government. For example, it should base China export control policy on up-to-date information considering commercial realities like domestic capabilities and availability from foreign non-US sources.

The paper pointed out that the current global economic crisis underscored the importance of the Sino-US relationship. At this key moment that would determine the future direction of bilateral economic relations, both countries should prevent trade protectionism.

The paper said, China and the US had each initiated massive stimulus packages. "It is critical that spending decisions related to the stimuli are made with economic and social, not political, rationales in mind."

It also said measures which excluded each other's companies from competing for stimulus funds would slow both economies.

On the Chinese side, the stimulus plan was heavily weighted toward roads, railways, airports, environmental conservation and rural infrastructure construction.

"Open and fair bidding processes should apply to all public and private projects, meaning transparency is critical at the local level," said the paper.