U.S. - CHINA TRADE RELATIONS

Whom to Contact:

Neil Pratt
Senior Director, International Trade and Trade Counsel
(202) 974-5333
npratt@plasticsindustry.org

China is a vast market that presents both opportunities and challenges for the U.S. plastics industry. Since joining the World Trade Organization (WTO) in 2001, China has adopted many economic reforms to open its market to foreign investment and imports. These market reforms have paved the way for U.S. plastics industry participants to supply China's large and growing plastics market. In 2003, China became the third largest export market for U.S. plastics industry goods, with exports valued at $1.32 billion.

While China is the third largest export market for industry goods, China is the second largest source of plastics industry imports – the largest import source of processed goods, overtaking Canada in 2004. Chinese plastics imports into the U.S. market far exceed U.S. plastics exports to China, leading to a large and growing deficit in plastics trade with China. The deficit is particularly acute in plastics product trade.

The U.S. plastics industry's trade position with China illustrates the importance of a balanced trading relationship with China. China must live up to its WTO obligations and play by the rules developed in the world trading system. This means that China's tariffs, non-tariff barriers, and other impediments must be removed to enhance market access for U.S. plastics industry goods. Greater market access can boost U.S. plastics exports, and strengthen the industry's trade position.

Attention must also be paid to the import-side of this equation. SPI does not condone shutting-off the U.S. market to Chinese imports, but does believe in strong enforcement of U.S. trading rights. There must be a level playing field in the U.S. market. View a copy of SPI's Statement on U.S.–China Economic Relations.

SPI supports any and all efforts to improve the U.S. plastics industry's trade position with China. SPI has been working on a number of areas to address the industry's concerns:

China's Undervalued Currency

China's WTO Compliance

Intellectual Property Rights

Promotion of U.S. Plastics Goods

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