U.S.-China Economic Relations

The committee heard testimony about U.S. economic relations with China. There was testimony that China is an important but unstable market. China is working to develop its own industries but is not in full compliance with the trade commitments it had made. The witnesses urged action, but in such a manner as to avoid retaliation and protectionism. The main concerns were with China’s currency manipulation and predatory trade practices that result in jobs being lost. Other issues addressed included the tax burden on manufacturing companies, U.S. taxes and mandated cost such as for environmental reasons make industries non-competitive. Mr. Jarrett was concerned that U.S. education in math and science is inadequate. Mr. O’Hagan was most concerned about counterfeiting and intellectual property infringement. The new Chinese certification mark is also of particular concern to electrical industry manufacturers as it is seen as another artificial trade barrier. Mr. Papovich was concerned about the high levels of piracy reinforced by market access barriers. Mr. Malpass alone argued against China floating its currency. He emphasized that China is operating under a different economic model, which he said is working, even though China is also losing manufacturing jobs. close