China is still not doing enough to fulfill its WTO obligations nor to rein in an "epidemic" of counterfeit goods, the US government said on Wednesday in an annual trade report to Congress.
The report presented by US Trade Representative Rob Portman also reaffirmed the administration's desire to clinch a global deal at the WTO, and to promote Middle East reform through trade opening.
It praised China -- which is the target of escalating protectionist clamor among US lawmakers -- for taking major steps to liberalize its economy since joining the WTO in late 2001.
"At this point, however, China's implementation of its WTO obligations is still incomplete," the report said.
The report singled out abuses of intellectual property rights (IPR) as one area that needed more attention.
"Counterfeiting and piracy in China remain at epidemic levels and cause serious economic harm to US businesses in virtually every sector of the economy," it said.
Despite its commitments as a WTO member, China has yet to confer full market access to US companies nor to give those firms already present in the country unfettered freedom of operation.
"In 2006, the administration will continue its relentless efforts to ensure China's full compliance with its WTO commitments, with particular emphasis on reducing IPR infringement levels in China," the report said.
The US wants to cooperate with China on trade questions, it said.
But it also warned that the administration "will not hesitate to employ the full range of dispute settlement and other tools available" to force China to heel on trade disputes.
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