WASHINGTON – The U.S. government is "making progress" in eliminating trade barriers with China as the Obama administration pursues its goal of rapidly growing American exports, Commerce Secretary Gary Locke said Thursday.

Mr. Locke, in an interview with The Wall Street Journal, cited advances with China on several fronts, ranging from eliminating discriminatory technology policies to removing redundant regulation of medical equipment to overhauling other non-tariff barriers.

"We have seen improvements. We have seen changes,'' Mr. Locke said. "That doesn't mean we're ever satisfied."

Top Obama administration officials have been appealing to China to allow its currency to appreciate amid calls by top lawmakers to punish China for depressing the value of the yuan.

"There has been movement in the Chinese currency," Mr. Locke said. But he added "the United States is pretty clear on that issue. China needs to do more."

Meanwhile, he said, China has taken some steps on enforcing intellectual property protections, a top priority of U.S. companies. "American companies that are using the legal system in China are prevailing. Although administrative remedies … are not as strong as you would like, if you do go to court more companies are reporting success," Mr. Locke said.

Chinese leaders have also committed to a campaign urging the public to use legitimate software, particularly at government agencies and state-owned firms, and to crack down on counterfeiting and piracy. Mr. Locke said the U.S. convinced the Chinese to allow audits of software licenses on government computers.

"We're going to keep monitoring that, but getting them to agree to outside audits is a big step," he said.

He said other governments must step up more to push China on its trade practices. "It can't be just the United States against China," Mr. Locke said. "It's got to be the other industrial or developed countries that constantly raise these issues. We'll be more successful in getting China to modernize and remove these non-tariff barriers if these are concerns of the world community."

The Obama administration is pushing to double American exports over five years to boost U.S. job creation. Last week, it launched a yearlong initiative with U.S. trade agencies – including the Commerce Department, Export-Import Bank and Small Business Administration – to encourage small- and medium-sized firms to export.

Mr. Locke, a former Washington state governor, previously worked as a lawyer assisting companies trying to expand into China and other Asian markets. Since taking his post in the Obama administration in March 2009, Mr. Locke said he's ramped up the Commerce Department's outreach to businesses and its efforts in advocating overseas for U.S. companies. He plans to personally lead four trade missions this year, the most for a Commerce Secretary since the early years of the Clinton administration, he said.

"We're on a mission to really help U.S. companies grow and expand through exports," he said. "The more that U.S. companies export, the more they produce. The more they produce, the more workers they need."

Feb 25th, 2011

Source: The Wall Street Journal