US Warns China Over Surplus & Rampant Product Piracy

US commerce secretary Carlos Gutierrez who is on his first visit to Beijing has warned China of a potential backlash amidst tensions over its rampant product piracy and trade surpluses.

Chinese Minister of Commerce Bo Xilai held talks with his US counterpart Carlos Gutierrez on Saturday in Beijing to explore a solution to the Sino-US textile trade friction. Both countries share the same desire that we should overcome difficulties to bring a brighter future to our cooperation on trade and economy."

Chinese Minister of Commerce Bo Xilai held talks with his US counterpart Carlos Gutierrez on Saturday in Beijing to explore a solution to the Sino-US textile trade friction.

"Respectfully, I don’t believe that there is full appreciation in China for the level of political pressure that we face with respect to our relationship," Carlos Gutierrez told his Chinese counterpart, Bo Xilai, as they started the meeting.

After the talks, Bo Xilai said that Sino-US trade has seen great progress over the past two decades, and the two countries should have the capability to properly deal with the trade dispute on textile and other issues.

"China and the United States are two engines for the world economy. Both countries share the same desire that we should overcome difficulties to bring a brighter future to our cooperation on trade and economy."

The two ministers also discussed intellectual property right protection, US trade deficits with China, and the preparations for the upcoming meeting of Sino-US joint commission of commerce and trade.

Gutierrez said it was a good and constructive meeting, but he did not elaborate what the US will do to settle the textile issue.

The US government decided to restrict Chinese textile and clothing imports earlier this year, months after such quotas were eliminated worldwide on Jan. 1st, according to World Trade Organization agreements.

China is one of the world’s major textile and clothing provider. Reports said that such limitations will cause about 100,000 layoffs in Chinese factories.

Gutierrez said the United States understands the frustration that China and the Chinese industry feels on the textile issue, and hopes it will not hurt the bilateral relations between the two sides.

China is the third largest trade partner of the United States.