By Wang Wenfeng (China Daily)
Updated: 2007-11-28 07:10

The US-China Economic and Security Review Commission (ESRC) released its annual report not long ago, the fifth the commission has submitted to Congress since its founding. The 2007 annual report calls itself "a mixture of good news and bad".

The contents contain some relatively positive elements with fair assessment, such as China's positive role in the Six-Party Talks on the nuclear issue of the Democratic People's Republic of Korea, in international peace keeping and reconstruction in Sudan. It also cites progress China has made in strengthening its export control system and restriction on weapons proliferation, and the fact that its economic policy has helped 200 million people out of poverty. It also emphasizes the importance of cooperation between the two countries on energy and environment issues. However, the overall tone of the report is negative and even hostile toward China.

Its assessment of China's national condition and the Chinese government's policies is largely biased and inaccurate.

The purpose of forming the US-China Economic and Security Review Commission, to quote the law that sanctions its existence, is "to monitor, investigate and report to Congress on the national security implications of the bilateral trade and economic relationship between the United States and the People's Republic of China". China-US relations have been developing steadily in recent years, as the two countries have conducted fruitful exchanges and cooperation, and the development of bilateral economic and trade ties have maintained strong momentum.

That between China and the US is one of the most important bilateral relationships in today's world and it is now in the best period of development. This is an assessment both countries agree on. But, the basic tone of the US-China ESRC annual report paints a bleak picture in shocking contrast to the welcome reality of Sino-US ties. Considering its stance on Washington's China policies this commission has maintained since it came into being, it is impossible for people not to feel its perception of and stand regarding China are anything but objective.

Read the latest ESRC annual report carefully and one will easily sense the mood of the authors when they wrote it. In the chapter on economy, for instance, the report is highly critical of China in a number of aspects and includes the conclusion that China "is unwilling to embrace a market-oriented mechanism, such as a freely traded currency".

China has long been making great efforts to build a full-fledged market economy system, because it suits the country's own interests and is the only way for China to join the international system. China still has some problems in this regard, but they are simply unavoidable at this stage of development. Besides, for years and especially since it joined the World Trade Organization, China's achievements in market opening and setting related rules have been widely recognized, which the US-China ESRC annual report also admits.

As for the fact that China has yet to allow its currency to be traded freely, it is an absolutely reasonable measure of protection for the time being and the Chinese side has time and again explained to the US side why. The annual report makes a case study of the impact of Made-in-China products have had on some industries in North Carolina. And the report is filled with examples of what existing policies of China the US cannot accept, and uses them to sum up the overall condition of the Chinese economy and China-US economic and trade ties as if China's economic reform had been a total failure.

Truth is, the Sino-US economic and trade ties reflect the high degree of interdependence between the two countries in multiple aspects and on multiple levels. Many people in the US also understand that China's existing policy on the renminbi exchange rate is reasonable. Although China still enjoys a favorable balance of trade with the US, the benefits that the US has gained from its bilateral trade with China are widely known as well.

The Chinese government is not chasing after a trade surplus, not only because it does not suit the trading partner's national interest but also because the difficulties and problems caused by the huge trade surplus are already there for all to see.

On matters concerning military security, energy resources and the environment, the situation in the Asia-Pacific region and the Taiwan question, the annual report is just as critical of China's actions and recommends a more severe posture for Washington's China policy on the basis of its negative view.

There have always been different views in the US over the country's China policy, but, generally speaking, it remains the mainstream opinion that attaches importance to China's role in international affairs, appreciates China's cooperation with the US in resolving major international issues in recent years. There is still a positive view on the direction that Sino-US relations are developing. And efforts to resolve differences between the two countries through negotiation and dialogue have gained support..

As an important part of the US government, Congress plays a key role in making the country's China policy. It is therefore absolutely necessary for the US Congress to correctly learn about and understand the overall situation of the Sino-US relationship and the Chinese government's policies as well as China's national condition. People have noticed in recent years that many members of the US Congress are showing growing interest in learning more about China, as exchanges between the two countries' legislatures and between the US Congress and various Chinese government departments and institutions increase.

Regrettably, however, the US-China ESRC as an important subcommittee of Congress has not kept an objective stand as far as the country's China policy is concerned and has not done careful study and analysis of the reality, leaving many of its conclusions frivolous while rushing to a tough stance against China without weighing other options. Its views for this reason are less convincing even in the US. This reality makes people not only question the commission's credibility but also worry about its ability to accomplish what Congress expects it to in its annual reports.

The author is a researcher with China Institute of Contemporary International Relations

(China Daily 11/28/2007 page10)