U.S. disappointed with
Chinese export subsidies: EXIM chairman
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[August 09, 2016]
By Sue-Lin Wong
BEIJING (Reuters) - A senior U.S. trade
official on Tuesday complained that China's rising export subsidies
were damaging American businesses and criticised the U.S. political
system for failing to adapt to competition from China.
U.S. Export-Import Bank (EXIM) Chairman Fred Hochberg told reporters
in Beijing that China gave its exporters 10 times more financing
than the U.S. did in 2015, predicting the issue would be on the
agenda at the G20 summit in Hangzhou next month.
In 2015, U.S. EXIM approved $12.4 billion in export financing.
During his trip to Beijing, Hochberg met with the Export-Import Bank
of China, which he said extended $30 billion last year and he said
another agency benefitting exporters, Sinosure, gave $471 billion
last year to aid Chinese business and investment overseas.
He said he was disappointed China has yet to sign up to a global
framework regulating export subsidies.
"China's the second largest economy in the world and the largest
exporter, they really need to be part of this (framework)," he said,
blaming Beijing's preference for cutting "side deals".
When asked whether China would be likely agree to such a global
framework, Hochberg warned of a "race to the bottom" if Beijing
declined to participate.
Hochberg's comments come as China had another record trade surplus
in July even as imports from trading partners continued falling.
Some U.S. politicians are calling for retaliation against China.
Presidential candidate Donald Trump has called for a 45 percent
tariff on all Chinese goods.
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A U.S. EXIM report published last year said China provided exporters more
funding over two years than U.S. EXIM has given its exporters over its 81-year
history.
U.S. DEADLOCK "CONFOUNDING"
"China is both a competitor and a customer," Hochberg said.
"Understanding that requires just a more nuanced view."
Hochberg also had criticisms for the U.S. Congress for failing to support EXIM,
weakening its negotiating position, and leaving the bank with over $20 billion
in backlogged deals.
"It's confounding to U.S. exporters, it's confounding to U.S. workers and it's
confounding to our overseas buyers," he said.
The bank was shut down for five months last year after conservative U.S.
legislators accused it of "corporate welfare".
Although the bank has been reauthorised, confirmation of a third board member,
required to approve loans above $10 million, has been halted by Senate Banking
Committee Chairman Richard Shelby.
(Reporting by Sue-Lin Wong; Editing by Pete Sweeney and Richard Borsuk)
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