US steps up trade pressure on China (Roundup)

Apr 10, 2007, 0:42 GMT

Washington - The United States stepped up its trade confrontation with China on Monday with complaints to the World Trade Organization (WTO) over copyright piracy and Chinese barriers to US music, films and books.

The action by the top US trade official reflects growing pressure by US lawmakers on President George W Bush to get tough with Beijing.

China has taken steps to stem the burgeoning bootleg CD and DVD industry, but the US Trade Representative's Office (USTR) said laws still seem to 'permit large-scale piracy and counterfeiting.'

China's rampant copyright infringement of products such as Hollywood films have long been a point of friction with the US, even as the two nations have strengthened political ties.

One problem is that Chinese law allows anyone caught with less than 500 pirated DVDs or CDs to get away with a fine, rather than jail, US Trade Representative Susan Schwab told reporters.

'In other words, the thresholds create a safe harbour for the pirates,' she said.

The other US complaint attacks China's tight government control over foreign-culture imports, which USTR said 'denies US companies the right to import books, journals, movies, music and videos' and severely hampers distribution of home entertainment video products.

In both cases, the US is seeking dispute settlement talks under the WTO, the first step to resolve a conflict under the umbrella of the arbiter of world trade.

But the attack on Chinese government control over foreign cultural content carries explosive political overtones.

Schwab emphasized 'that the WTO actions I am announcing today should not be viewed as hostile actions against China,' but 'as the normal way for mature trading partners' to address disputes.

'We will continue to move forward in our important dialogues with China on the full range of trade matters on which we are working,' she said.

The Bush administration, faced with a growing sense in Congress that China is trading unfairly, has taken a tougher approach toward Beijing in recent weeks.

Recent US moves included a WTO complaint accusing China of illegal export subsidies and duties on China's shipments of glossy paper to the US, a warning signal that other Chinese exports could also face levies in future.

Americans' appetite for low-priced Chinese goods helped lift the US trade deficit with China to a record 233 billion dollars in 2006. The US is the largest overseas market for Chinese goods.

China, which joined the WTO in December 2001, also stands to benefit from applying the group's trade rules, Schwab said.

'China has an obvious and growing interest in stopping piracy and counterfeiting as China itself becomes an innovator,' she said.