Baucus presses Chinese leader on economic, trade issues

Senate Finance  Chairman Max Baucus (D-Mont.) urged Chinese Commerce Minister Chen Deming to resolve issues with intellectual property rights and restrictions on U.S. beef exports. 

Baucus, who is attending the Asia-Pacific Economic Cooperation (APEC) trade summit in Montana this week, said the time is now to finally reach a resolution on the long-standing issues.

“These issues are more than just rhetoric, they have real consequences – costing jobs and slowing our economy" Baucus said in a statement.

China’s unscientific restrictions on U.S. beef put ranchers at a marked disadvantage, "and it is time for them to end," he said as 21 APEC-member economies meet.  

"China represents a great opportunity for American ranchers, farmers and manufacturers, but shared prosperity requires both sides to play by the rules."

 A report released earlier this week showed that China’s intellectual property violations cost the United States 2.1 million jobs and $48 billion in economic activity in 2009. Of that total, approximately $36.6 billion, or 75.9 percent, was attributed to lost sales, while the remaining $11.6 billion was caused by combination of lost royalty and license payments as well as other unspecified losses.

The report also estimates that U.S. firms spent approximately $4.8 billion in 2009 to address China's policies. 

Baucus isn't alone in pleading his case with Chinese officials.

On Wednesday, Senate Finance ranking member Orrin Hatch (R-Utah) and panel member Chuck Grassley (R-Iowa) also argued that China's policies are costing billions of dollars and millions of U.S. jobs, following the release of the report from the U.S. International Trade Commission (ITC).

Treasury Secretary Timothy Geithner has been pressing Chinese leaders to change their policies on intellectual property as well as letting their currency appreciate at a faster and revamping an approach that favors Chinese goods and services. 

Baucus last met with Chen in China last fall to discuss the same issues. 

In 2009, U.S. goods, services, and agriculture exports to the APEC region totaled about $1 trillion.