U.S. Trade Office Targets China’s Procurement Policy

(Jeff Plungis — Bloomberg)

The U.S. trade office rapped the Chinese government in a report... for imposing procurement and import restrictions that harm American companies, while steering clear of the debate over currency policy. China’s proposal to buy only software and equipment made in that nation discriminates against foreign competitors, the Trade Representative’s office said in an annual report on barriers to U.S. goods and services worldwide. The Obama administration is examining the Asian nation’s regulations and tax policies.

The report doesn’t mention China’s policies on valuing its currency, the renminbi, as one of the impediments to U.S. exports. China, which has held the renminbi, or yuan, at about 6.83 per dollar for the past 20 months to aid exporters, has been criticized by U.S. lawmakers who are looking for the trade office to pursue retaliatory action through import tariffs.

The trade office instead focused on other complaints by U.S. businesses including the proposal to limit government purchases of computer and other technology equipment containing what China has labeled “indigenous innovation.”

“The Obama administration is following through on its commitment to call out and break down barriers to American exports worldwide,” U.S. Trade Representative Ron Kirk said in a statement. Read more here.