Politics and resentment hamper US-China ties
By Martin Rushmere
San Francisco

Push-pull politics is splintering US trade initiatives with Asia as pressure builds for a solution to the country's economic woes. Leading the push for faster involvement quicker progress on initiatives and closer alliances is the US Chamber of Commerce.
The chamber has called for more government support and money to help small and medium-sized American businesses exporting to the China market, backed up by energy co-operation, expansion of diplomatic ties and even getting more people to learn Chinese.
More importantly, the chamber is solidly behind the Doha round of WTO (World Trade Organisation) talks, which has the simple aim of getting all countries to remove trade barriers.
The most powerful force in the camp that wants to pull back from opening up trade is the powerful National Association of Manufacturers. Frank Vargo, vice-president of international economic said Doha and, by extension, all trade treaties "is a reciprocal trade negotiation, not a donor's conference". His beef is that the US is giving more than it gets in dealing with China, India and Brazil.
"While less than full reciprocity certainly can be expected from the less developed countries, a high degree of reciprocity must be expected from the advanced developing countries that are now major exporters of manufactured goods," he said.
At the root of US suspicions is the spectre of China dumping goods on the market. Bad feelings continue over steel oil pipes and other dumping complaints are said to be on the way.
Jiang Diqing, head of the China programme at the Cato institute, notes that most dumping rows involve what he calls "fading" US industries, such as steel, and are partly due to the economic crisis.
He said that the complaints of dumping have surged recently, even though prices of China's exports have not changed - making it strange that the complaints were not made before.
For the moment, arguments by groups such as the National Association of Manufacturers are being lost in the general tide of President Barack Obama's administration, which is clear about pushing for wide open trade paths.
Secretary of Commerce Gary Locke said the government would help American companies sell their products to China in order to reduce the trade deficit.
"The US-China relationship is the most important bilateral relationship of our time. We depend on each other economically as well as politically on a whole host of issues," Locke said.
An even more forceful message is being put across by Ron Kirk, US Trade Represnetative. Not only are trade agreements with Korea and other countries being worked on, he said, but the progress made during the Bush era will be continued - a change to President Obama's pledeges during his campaign.
"It's time to lay down our arms, come out of our bunkers, and start supporting important initiatives on their merits, not reject them for tradition's sake," he said, a reference to the fierce opposition from trade unions and other groups that are the the bedrock of Obama's support.
But there is still deep Asian resentment of US trade and maritime commerce policies. Japan's commerce ministry in its annual report criticised more than 30 measures that it says are unfair practices.
At the top is the Jones Act - which forbids foreign-flagged ships from carrying cargo between domestic ports - and the Harbour Maintenance Tax, which imposes duties on imports. The ministry says these two rules could break WTO principles on equal treatment for exports and imports.
Such criticism resonates with China, which has long complained of being vilified for its own faults, while those of the US are ignored. One example is a drama and lawsuit being played out in the insignificant central California town of Victorville over a logistics centre.
China's CMB Investments arranged an investment of US$500,000 by 200 Chinese and Korean businessmen, with some reports saying that Green Cards were promised as well, to develop a logistics centre at an abandoned military base. City officials signed a memorandum of understanding in China but later said they would find their own investors.
CMB is suing the city for $33 million for breach of contract and malicious fraud.
The outcome of disputes such as these is likely to influence Chinese attitudes about the wisdom of becoming more conciliatory to US investment and trading and could affect relations.