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USITC Announces Investigation and Public Hearing on China


New York, Jul 17, 2007

The U.S. International Trade Commission (the Commission) has announced an investigation and public hearing to examine Chinese government practices and policies affecting various industries, products, and services. Information from this investigation will be used to prepare the first of three reports on U.S.-China trade that were requested by the U.S. House of Representatives’ Committee on Ways and Means.

The report will examine the causes of the U.S.-China trade imbalance, and whether and to what extent China uses government intervention to promote investment, employment, and exports.

The Commission will detail practices and policies that central, provincial, and local government bodies in China use to support and influence decision-making in China's agricultural, manufacturing, and services sectors, as well as in individual firms. The report will also analyze the impact of a recent policy directive from China's State-Owned Assets Supervision and Administration Commission that has raised serious concerns about government interventions in a number of industry sectors.

Specifically, the report will consider government policies and interventions relating to:

  • the privatization of state-owned enterprises and private ownership;
  • price coordination and taxation;
  • industrial development and infrastructure development;
  • restraints on imports and exports;
  • utility rates;
  • research and development;
  • worker training and retraining;
  • the banking and finance sectors, including indicative lending and the treatment of nonperforming loans;and
  • the rationalization and closure of uneconomic enterprises.

To assist in its investigation, the Commission is seeking public comments through hearing testimony or written submissions, identifying the industries, products, or services in which Chinese government policies and interventions are prevalent, and in which leading U.S. exports have not penetrated the Chinese market. Public comments regarding the sectors that are perceived to be primary drivers of the U.S.-China trade deficit are also encouraged.

A public hearing in connection with this investigation and report will be held at the U.S. International Trade Commission Building, 500 E Street SW., Washington, DC, at 9:30 a.m. on September 6, 2007.

All written submissions, including requests to appear at the hearing, briefs and statements, should be addressed to the Secretary, United States International Trade Commission, 500 E Street, SW., Washington, DC 20436 by August 17, 2007.

For complete details, please review the June 27, 2007, Federal Register notice.


The Commission’s report is expected to be delivered to the Committee on Ways and Means in late December.

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