Two high level US political figures, both of Chinese ancestry, Secretary of Commerce Gary Locke and Secretary of Energy Steven Chu, are on a "green visit" to China. China has said it is strongly opposing the new "carbon tariff" proposed by the US, and warned that it could trigger trade problems.
The idea of carbon tariff has been raised by Steven Chu. After his appointment as Energy Secretary, Chu declared that if other countries had no policy to restrain greenhouse gas emissions, the US would impose a carbon tariff to help US manufacturers avoid unfair competition. From 2012, the US plans to put in place a domestic greenhouse gas restraining system, and to set up a reviewing system for imported goods.Â
Chinese Minister of Commerce Chen Deming pointed out when meeting with Secretary Locke that China was against the carbon tariff as it violates the principles of United Nations Framework Convention on Climate Change and the Kyoto Protocol. China regards it as a new excuse for trade protectionism.
Secretary Locke said the US valued China's concern on the issue, and was willing to consult with China to solve any problems.
Ministry of Commerce spokesman Yao Jian said a carbon tariff would harm the interest of developing countries, and could well trigger trade retaliation, which would be harmful to the economic rebound after the financial crisis.
Mr. Locke had said during a speech at the US Chamber of Commerce that to avoid international blame for environmental disaster, China needed to do a lot more.
China has also come under criticism for protectionism, such as excluding foreign companies from bidding on a recent wind power project. Mr. Locke said that China could not close its markets, for keeping a fair and open market was the consensus reached between leaders of the two countries at the G20 meeting in London.
American enterprises say that China encourages the development of local enterprises by restraining foreign energy companies from entry into the Chinese market.
Yao Jian said yesterday that all the companies would have opportunities in China's economic stimulus. European and American environmental protection companies with advanced technology will exert great influence in China's construction of an energy-saving and environmentally-friendly society. "We will treat all companies equally," he said.
China and the US are jointly to invest $15 million to set up a research center for clean energy. The center will focus on energy efficiency, including technology for clean coal and the development of clean automobiles. The center will set up offices in both China and the US, though locations have not been decided on. Officials of the two countries will meet in the following months to fix details for the establishment of the center, which is expected to begin preliminary operations before the end of 2009.
Although the main topic of the visit has been energy and climate cooperation, Mr. Locke also emphasized that the trade imbalance between China and the US could no longer continue. In 2008 America's trade deficit to China reached nearly $27 billion. Locke said in the next few months and years, president Obama would try to solve the imbalance. He also said the global economic rebound would be accelerated if China allowed a more flexible yuan rate and more deeply opened its domestic markets to importers and FDI.
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