MARKET ECONOMY STATUS

China was cataloged as a non-full market economy when it joint the World Trade Organization in 2001 though it has established a market-oriented economic structure, which caused disadvantages for China in trade conflicts such as anti-dumping cases.

On the 15th session of the China-US Joint Commission on Commerce and Trade (JCCT) in April, China and the United States agreed to set up working group within the framework of the JCCT, a mechanism established in 1983, to deal with China’s market economy status.

INTELLECTUAL PROPERTY RIGHTS

William H. Lash, US Assistant Secretary of Commerce for Market Access and Compliance, warned China to enhance protection on intellectual property rights before ending his tour to China in August, waving pirate DVD discs and golf club.

China, troubled by local governments’ weak enforcement on IPRs protection, then reorganized 500,000 civil servants, directed by Vice-Premier Wu Yi, to safeguard IPRs of both foreign and domesticowners.

EXCHANGE RATES OF RMB

The US congress and industry representatives accused China "manipulates" the exchange rates of Renminbi (RMB), Chinese currency, in a bid to twist trade, saying it caused US great trade deficits and high unemployment in manufacture industries.

In a report to the Congress by the US Department of the Treasury, it confirmed that China did not manipulate the RMB exchange rates in a bid to twist trade with the United States.

The Office of the US Trade Representative also rejected appeals on suing China in the World Trade Organization.

TEXTILE PRODUCTS

Chinese Ministry of Commerce warned the US side to "cautiously" handle cases on textile imports when the US government accepted industrial appeals which will lead to import quota on Chinese fabric products, such as yarns, shirts and trousers in October.

Before that, the US government has re-imposed import quotas on bathgowns, bras, socks and certain textiles.

China holds that some US industrial organizations required restrictions on Chinese textile products based on an assumption, saying it will damage the free trade of textile products and will extend imports quota in another way.

TOURISM

China signed an agreement with the United States to promote bilateral travel and tourism cooperation in earlier December.

He Guangwei, visiting Chairman of China National Tourism Administration said that the United States is China’s largest resource of long-journey tourists, as well as Chinese tourists’ favor.

ANTI-DUMPING ON FURNITURE, SHRIMP

China expressed "strong dissatisfaction" in Dec. 13 with the US decision to impose punitive duties on wooden bedroom furniture imported from China on the accusation that the furniture was being dumped in the United States.

The decision leaves in place duties set by the US Department of Commerce of up to 198 percent on more than 110 Chinese furniture producers.

Chinese Ministry of Commerce criticized in Dec. 2 a recent arbitration ruling on Chinese shrimp imports made by the US Department of Commerce, calling it unfair for Chinese companies.

According to the arbitration, 35 Chinese exporters will pay an average of 55.23 percent anti-dumping tax, while other Chinese firms will have to pay 112.81 percent for their shrimp exports.

The two cases were regarded as the top two anti-dumping cases between the two countries this year.

CIVIL AVIATION

China and the United States signed an agreement on civil aviation cooperation on July in Beijing, which allows the pointed companies to flight to the other’s any cities. Before that, Chinese airlines can only flight to 12 US cities and US companies,five Chinese cities.

CHIP

The US administration accused China’s tax policy on semiconductors "discriminatory" to US chip manufacturers, and requested consultation with China at the WTO in March.

Four months later, China and the United States sign a Memorandum of Understanding (MOU) on the value-added tax of semiconductors.

TRADE DEFICIT

The United States has been complaining its great trade deficit with China this year.

However, Chinese Vice Premier Wu Yi told the 15th session of the China-US Joint Commission on Commerce and Trade that key to the problem is on the US side.

She urged the United States to enlarge exports, especially high-tech products with more value added, to China, rather than put restriction on imports from China.

According to Chinese official figures, China’s trade with the United States recorded 152.7 billion US dollars in the first 11 months, up 34.3 percent year on year.