- Dubai's Debt Woes Signal New Era for Creditors
- US Treasury Wants Banks to Do More to Ease Mortgages
- Fed Audit Would Hurt Economic Prospects: Bernanke
- Next Week: Cash In Now Or Wait For A Santa Rally?
- Dubai Stock Selloff May Bring Buying Opportunity
- Black Friday Sales Rise by 0.5%: ShopperTrak
- Longer Lines, Fuller Carts This Black Friday
- Big US Banks May Be Forced to Raise Capital: Bove
- Bank of America Amends Pay for Senior Executives
- U.S. Stocks Fall on Dubai Worries
- Black Friday at Best Buy
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Longer Lines, Fuller Carts This Black Friday
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Obama's Emission Reduction Pledge Paints Future for Autos
- Is Super Bowl Halftime Act Too Old?
- Surprising Options Trades in TiVo Shares
- EA Sports Hopes to Pump Up Sales Through Pop-Up Locations
Text Size 
The United States and China both need to fend off a troubling rise in economic nationalism in order to keep their economies strong, U.S. Commerce Secretary Carlos Gutierrez said on Thursday.
Speaking to business groups in Beijing, Gutierrez said the large U.S. trade deficit with China was feeding into protectionist sentiment but added that steps such as trade legislation aimed at China could only be counterproductive.
"It's no secret that the $256 billion bilateral trade deficit is a concern. It plays right into the hands of those who criticise not just free trade with China, but frankly, free trade in general," Gutierrez said, noting some of the rhetoric surrounding the U.S. presidential election.
"Economic isolationism has proven to be a flawed strategy and we have seen time and time again that protectionism doesn't protect anybody."
Gutierrez acknowledged that attention on Capitol Hill had recently shifted somewhat from China to issues such as Washington's free-trade agreement with Colombia, but cautioned that it could be thrust back into the spotlight as the presidential campaign continues.
He pointed to the need for better protection of intellectual property rights and greater government transparency -- perennial complaints about China by U.S. firms.
The United States for its part needs to reassure China that it welcomes investment, given the protectionist signals that have been sent to Beijing through experiences such as Chinese oil firm CNOOC's failed bid to buy Unocal in 2005, Gutierrez said.
CNOOC withdrew its bid after facing intense opposition from U.S. politicians who said the acquisition could harm American economic security.
He noted that while U.S. companies had invested more than $22 billion in China, Chinese firms had put just $550 million into the United States, despite many now being flush with cash.
Gutierrez was in Beijing to meet a number of Chinese officials, including his new counterpart, Chen Deming.
He also officially launched the implementation of an agreement signed late last year that will allow for Chinese tour groups to travel to the United States, something he said would help trim the trade deficit while enhancing understanding.
The first group of tourists under the programme is scheduled to visit the United States in mid-June, coinciding with the fourth round of the bilateral "strategic economic dialogue," to be held in Washington.
Print
Email
- These four sectors will be the next to lead the market.
- Zhu Zhu Pets are this year's must-have toy, fetching $40 or more on eBay.
- From the why-didn’t-I-think-of-that file, we present Jason Sadler, a man whose job is wearing T-shirts.
- It may be the most unusual guide to business you'll read.
- Shopping for a gadget hound? The choices can be baffling. Here are a few that should be a hit.
- "The Who" will be the halftime act for Super Bowl XLIV on Feb. 7 in Miami. Is the NFL behind the times?
Data is a real-time snapshot *Data is delayed at least 15 minutes