Three American business groups are appealing to Washington and Beijing to promote freer trade and reject protectionism amid slowing U.S. economic growth and a widening trade gap with China.In an annual report on business conditions, American Chambers of Commerce for China, Shanghai and South China rejected calls by some in the United States for punitive measures over Beijing's trade surplus and currency controls. They also called on Beijing to repeal rules that limit foreign investment and competition. "Defending and preserving the openness of the trade relationship should be a core commitment of both the U.S. and Chinese governments," James Zimmerman, chairman of the American Chamber of Commerce in China, said at a news conference Monday.



"With slowing economic growth in the U.S., the focus needs to be on enhancing America's overall competitiveness rather than seeking defensive protectionist solutions," Zimmerman said.

The groups said they will send a 40-member delegation to Washington in May to deliver the report to key lawmakers. Zimmerman said they hope to meet with the U.S. presidential candidates or their aides.

The United States says its trade deficit with China in February was $18.4 billion — down 9.6 percent from the same month last year but the biggest U.S. gap with any country.

Critics of Beijing's trade record say currency controls and import barriers are partly to blame, and some American lawmakers are calling for punitive tariffs on Chinese goods.

The Chambers of Commerce said U.S. companies are facing sharply rising costs in China and barriers to imports and investment. But they said 70 percent of 800 American companies that responded to a survey made money in China in 2007 and many said it is a key market. Some 64 percent said their five-year outlook for China was optimistic — the highest rating.

The report found Chinese protectionism was cited by 17 percent of companies as their top challenge.

Business groups say Beijing is trying to promote the growth of Chinese competitors in insurance and other industries by using investment barriers and other hurdles to keep out foreign rivals in violation of its free-trade commitments.

Beijing should "distance itself from regulations that inhibit competition" and repeal laws that limit foreign investment, said Harley Seyedin, chairman of the South China chamber.

Other companies surveyed pointed to unclear regulations, bureaucracy and lack of transparency, according to the report.

Many companies believe China has made little progress in reducing violations of foreign trademarks, copyrights and other intellectual property rights, or IPR, said Norwell Coquillard, chairman of the American Chamber of Commerce in Shanghai.

"IPR continues to be a top concern," Coquillard said.

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On the Net:

American Chamber of Commerce in China: http://www.amcham-china.org.cn

American Chamber of Commerce in Shanghai: http://www.amcham-shanghai.org

American Chamber of Commerce in South China: http://www.amcham-southchina.org

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