United States, China Relax Trade Restrictions

Posted by Reading Time: < 1 minute

Oct. 30 – United States and China representatives have agreed to ease trade restrictions on certain sectors and stop issuing new trade protection measures against each other at the end of the 20th China-U.S. Joint Commission on Commerce and Trade talks held in China’s eastern city of Hangzhou.

The resolution comes just before U.S. President Barack Obama is scheduled to visit China for the first time in November. Recently, trade relations have been tense with both countries accusing each other of protectionist measures. Restrictions will be lifted in agriculture, starting with U.S. pork exports to China, which were stopped due because of the H1N1 influenza outbreak.

Last year, United States pork exports to China alone amounted to US$560 million. The United States in return will relax its restrictions on Chinese poultry exports to the country. More restrictions will also be eased in technology, manufacturing and travel to name a few.  The United States has promised to issue more visas for Chinese tour groups visiting the country.

China and United States bilateral trade is important for both as they are each other’s second-largest trading partners although this value is skewed in favor of China with the United States saddled by a US$147.3 billion trade deficit.

The Wall Street Journal reports that during the talks in Hangzhou, the United States was able to petition for easier access for foreign companies to sell wind-power technology in China.

China also said it would improve intellectual-property protection in terms of of Internet music-distribution and academic journals.  Significant developments also included China agreeing to lift local content restrictions for products to be sold to Chinese government agencies and consider products made in the country by foreign companies as local products.