US, China should address economic challenges

By Vicki Needham - 01/30/13 02:44 PM ET

The United States and China should aim for a comprehensive framework that addresses the economic opportunities and challenges businesses face.

The U.S.-China Business Council (USCBC), a coalition of firms doing business in China, is pressing for the trading partners to embrace a more aggressive plan to solve nagging issues, instead of dealing with them incrementally, the group said Wednesday.

"American companies face a variety of challenges in their business operations with China, including market access barriers, protecting intellectual property rights and licensing challenges," said USCBC President John Frisbie.

The statement of priorities "builds on the successful work that has been done in the past year and seeks to refocus the efforts of both governments on the tangible steps that can be made to make a difference for companies doing business in both the United States and China," he said.

The report contains 28 specific recommendations including ensuring fair and open investment environments that create jobs, reducing trade barriers, enforcing globally accepted trade rules, and providing strong intellectual property rights protection

"The start of President Obama’s second term coincides with a leadership transition unfolding in China," said Robert McDonald, USCBC's chairman and head of The Procter & Gamble Company.

“Government leaders in Beijing and Washington, D.C. have the opportunity to address the challenges that have lingered in the relationship as well as address new issues that have come to the forefront."

The USCBC estimates that China is at least a $250 billion market for U.S. companies and exports to China, including manufactured goods, chemicals, electronics, and agriculture products, have probably reached $110 billion for the first time, Frisbie said.

"There is much to be done to improve the US-China commercial relationship, but it will require government leaders in China and the United States to think critically and develop meaningful policies that help us achieve that goal."