US warns at WTO of China backsliding on economic openness

GENEVA, July 24, (RTRS): The United States is worried that China is retreating from pledges to open its economy to market forces as it tries to cope with a slowdown in growth, US trade diplomat Chris Wilson told the World Trade Organization on Tuesday.

China is undergoing a regular twoyearly review of its trade policies at the WTO this week, in which the body’s other 162 members get to quiz its officials and critique its policies.

Wilson, the deputy chief of the US mission to the WTO, said China’s leaders had endorsed a number of far-reaching reform pronouncements, including that the market would be “decisive” in allocating resources, and it was clear that serious efforts were being made.

“Over the past year, however, as growth in China’s economy has slowed, the United States has sensed an increasing reluctance among China’s economic planners to pursue further reforms,” he said, according to a published transcript.

“In addition, more and more US enterprises have been expressing concern about a less welcoming business and regulatory environment for foreign enterprises.”

The United States hoped the developments were temporary and China would aim for a more transparent, predictable and welcoming regulatory environment, but that this would be impossible as long as the state supported and favoured domestic industries, Wilson said.