The Bush administration, facing a record deficit with China and complaints of unfair trade practices from U.S. producers and lawmakers, is pushing China toward a bigger role in the international trading framework.
WASHINGTON — The Bush administration, facing a record deficit with China and complaints of unfair trade practices from U.S. producers and lawmakers, is pushing China toward a bigger role in the international trading framework.
"China's apprentice period must now come to a close and China must act as a fully accountable participant and beneficiary in the international trading system," Deputy U.S. Trade Representative Karan Bhatia told the U.S.-China Business Council on Wednesday. "China has not played a role in strengthening the international trading system commensurate with its commercial heft and with the benefit it has obtained from that system."
China joined the World Trade Organization in 2001 and benefited significantly from the elimination of apparel and textile quotas last year. However, Bhatia described China's track record as a member of the global body as mixed, with some of its obligations left unfulfilled.
Thanks partly to China's WTO membership, two-way trade with the U.S. mushroomed to about $286 billion last year, contributing to a projected trade deficit for the U.S. of $200 billion.
"An imbalance of this magnitude is not sustainable, either economically or politically, over the long term," Bhatia said.
As China continues to develop as a trading partner, Bhatia said it must work to rein in "rampant intellectual property rights violations" and address nontariff barriers that make it difficult for U.S. companies to do business in China.
"We will continue to press China to address policies that make it difficult and often impossible for our competitive domestic companies to compete against unfairly subsidized Chinese exports," he said.
U.S. textile companies often complain the industry cannot compete with goods made in Chinese factories that are supported by the government. They also argue that China's currency policies keep the yuan undervalued, making the country's goods even less expensive in the U.S. market.
"The United States will not hesitate, when appropriate, to use all tools at its disposal to ensure that China lives up to its commitments, including dispute settlement at the WTO or the use of trade remedies within our own legal system," Bhatia said.
Despite the tough talk, Bhatia acknowledged a significant upside to trade with China and described the relationship between the two countries as "enormously important.""U.S. consumers have clearly benefited from the trade relationship, having access to a wider variety of less-costly goods," he said. "On a macro-economic level, these low-cost consumer and industrial goods have assisted the United States in holding the line on inflation for a long time. This, in turn, has helped the Federal Reserve to maintain historically low short-term interest rates for sustained periods, thus spurring U.S. economic growth."
In this vein, the U.S.-China Business Council, which was holding its Forecast 2006 Conference at the St. Regis Hotel here, also released "The China Effect: Assessing the Impact on the U.S. Economy of Trade and Investment with China," a report stressing the positive results of the trading relationship.
Produced by Oxford Economics and The Signal Group, the report said the U.S. gross domestic product will be 0.7 percent higher and U.S. prices will be 0.8 percent lower by 2010 as a result of increased trade and investment with China since 2001. These two factors will equal about $1,000 in real disposable income per U.S. household per year, it said. The relationship will also shift 500,000 jobs from the manufacturing to the service sector.
The Fiber Price Sheet The last Tuesday of every month, WWD publishes the current, month-ago and year-ago fiber prices. Prices listed reflect the cost of one pound of fiber or, in the case of crude oil, one barrel.
Price on 1/30/06*
Price on 12/26/05
Price on 1/24/05
December Synthetic PPI
*The current cotton price is the December average on fiber being delivered to Southeastern region mills, according to Agricultural Marketing Services/USDA. The wool price is based on the average price for the week ended Jan. 27 of 11 different thicknesses of fiber, ranging from 15 microns to 30 microns, according to The Woolmark Co. Information on polyester pricing is provided by the consulting firm DeWitt & Co. The synthetic-fiber producer index, or PPI, is compiled by the Bureau of Labor Statistics and reflects the overall change in all synthetic-fiber prices. It is not a price in dollars but a measurement of how prices have changed since 1982, which had a PPI of 100. Oil prices reflect last week's closing price on the New York Mercantile Exchange of future contracts for light, sweet crude oil to be delivered next month.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)