US Business Group Ramps Up Pressure On Beijing

An American business group called on Beijing on Wednesday to allow the same access to its state-dominated economy that China's companies have to US markets after Washington revved up a simmering trade dispute with a surprise announcement of plans to go ahead with a tariff hike.

The American Chamber of Commerce in China said this country can no longer justify the protections it was granted as a developing country when it joined the World Trade Organisation in 2001. The group said regulators should ease or scrap restrictions on foreign investment and activity in fields including aerospace, finance, retailing and technology.

The United States, Europe and other trading partners are increasingly pressing for such reciprocal access as Chinese companies expand abroad while Beijing limits access to large swathes of its domestic economy.

Such complaints have gained prominence amid US pressure, backed by President Donald Trump's threat to hike tariffs on US$150 billion of Chinese goods, for Beijing to narrow its multibillion-dollar trade surplus with the United States.

"China's success means that it can no longer credibly defend protectionist policies on the grounds that it is still a 'developing country'," said the American chamber. "If Chinese businesses can make an investment in the US, American companies should be able to make the same investment in China."

US Commerce Secretary Wilbur Ross is scheduled to visit China on Saturday to negotiate the details of that agreement. On Tuesday, the Trump administration renewed its threat to place 25 percent tariffs on US$50 billion of Chinese goods in retaliation for trade practices it calls unfair. The White House also announced new restrictions on Chinese investment and US exports of high-tech goods to China.

Some trade experts said the tariff announcement is likely intended to strengthen Ross's hand. (AP)