Baucus urges Chinese leaders to move forward on economic, trade issues

President Obama will meet with Hu at the White House and hold a rare state dinner on Wednesday. 

In October, Baucus traveled to China to meet with Chinese Vice President Xi Jinping, and most recently released a report last month with Senate Finance Committee ranking member Chuck Grassley (R-Iowa) from the International Trade Commission (ITC) detailing China’s “infringement of intellectual property rights and discrimination against American industries.”

The United States is expected to export more than $100 billion of goods and services to China this year while the United States remains China’s largest export market, Baucus said in the letter. 

“We must measure the success of our relationship by how we address these challenges, as well as by how we create and take advantage of economic opportunities,” he said. 

During the December meetings, Baucus said officials agreed that China’s government agencies would only purchase and use legal software. But with software piracy rates at about 80 percent, Baucus is now urging China to “establish transparent, public and systemic procedures that ensure all government agencies at the central, provincial, and municipal levels, as well as China’s government enterprises, purchase and use legitimate software.”

While Baucus said China has agreed not to discriminate against innovative U.S. companies that are competing for Chinese government procurements, he further urged China to follow the World Trade Organization Agreement on Government Procurement (GPA).  

“I look forward to China’s submission of a robust revised accession offer this year,” he said. “And I hope China’s offer includes comprehensive coverage of state-owned enterprises as well as sub-central government entities.” 

He also urged China to demonstrate a renewed commitment to moving toward a market-determined exchange rate. 

“Such movement will not only help improve U.S.-China economic relations, it is a necessary step in China’s efforts to move its economy away from export-led growth and toward domestic consumption-fueled growth,” he said. 

“While China has taken steps to appreciate its currency since June 2010, this appreciation has not been meaningful.”

Baucus also asked for China to open up its economy to U.S. beef and continue discussing the issue. 

“I urge these negotiations to successfully conclude as quickly as possible,” he said. “International scientific standards are clear, and there simply is no excuse for China’s refusal to abide by them.”