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U.S. Official Says China

Vows to Cut Trade Gap

Commerce Chief, Visiting

Beijing, Pledges to Be Tough

In Pushing for Level Field

ASSOCIATED PRESS

June 25, 2004; Page A9

BEIJING -- Chinese Premier Wen Jiabao and other top officials promised to do more to help trim Beijing's soaring trade surplus with the U.S., said U.S. Commerce Secretary Don Evans.

Diplomatic efforts, rather than threatening trade sanctions, are the best way to improve China's trade and labor policies, he said.

Still, Mr. Evans vowed to be "tough, very tough" on enforcing U.S. trade laws. China's trade surplus with the U.S. hit a record $124 billion in 2003.

"We have to make sure there is a level playing field in markets around the world," Mr. Evans said.

His visit comes as the countries trade accusations over the alleged dumping of various products in their markets.

Mr. Evans urged Beijing to be "open and transparent" in its handling of a complaint against Corning Inc., of Corning, N.Y., that it sold optical fiber at unjustifiably low prices in China.

Commerce Minister Bo Xilai told Mr. Evans that China believed a similar U.S. allegation against Chinese makers of wooden furniture was a violation of fair-trade rules, the ministry said in a posting on its Web site.

Mr. Evans described the Commerce Department ruling -- calling for tariffs of as much as 198% on Chinese-made beds and other furniture -- as "preliminary."

The case will "be handled in a very, very open and transparent process," he said. "All parties will have an opportunity to come in and present their responses."

Also Thursday, U.S. Labor Secretary Elaine Chao said she was raising the cases of two imprisoned Chinese labor activists in meetings with Chinese officials. Her visit follows a decision by the U.S. government to reject a petition by the AFL-CIO, the largest U.S. labor group, demanding a probe of Chinese labor abuses.

Ms. Chao, the first U.S. labor secretary to visit China in 16 years, gave no details of her comments to Chinese leaders or their response about Yao Fuxin and Xiao Yunliang, who were imprisoned last year following protests by laid-off workers.

Ms. Chao described their situation as "very serious and very sad" and said she would mention it during a meeting Thursday with Chinese Foreign Minister Li Zhaoxing.

China's Communist leaders allow only government-controlled unions and use vague security laws to prosecute independent labor activists.

Mr. Yao was sentenced to seven years in prison and Mr. Xiao to four years. Their wives asked Ms. Chao to appeal for their release.

Ms. Chao cited no other specific cases or complaints about Chinese labor conditions -- the focus of what she described as "candid" talks. But she said Chinese labor and safety officials openly acknowledged problems.

"China's economic conditions are so vibrant that many labor issues have not kept pace with the growth of the economy," she said.

Workplace accidents killed 14,675 Chinese workers last year, the government says.

Copyright © 2004 Associated Press