x Abu Dhabi, UAESunday 23 July 2017

Clinton takes swipe in Hong Kong speech at nations that flout trade rules

US secretary of state does not name China but calls for rigorous reforms in global trade, as tensions between Washington and Beijing simmer over issues from China's currency to export restrictions.

Chinese state councilor Dai Bingguo, right, speaks with the US secretary of state, Hillary Clinton, after meetings at Kylin Villa in the southern Chinese city of Shenzhen yesterday. Saul Loeb / AFP Photo / Pool
Chinese state councilor Dai Bingguo, right, speaks with the US secretary of state, Hillary Clinton, after meetings at Kylin Villa in the southern Chinese city of Shenzhen yesterday. Saul Loeb / AFP Photo / Pool

HONG KONG // Hillary Clinton, the US secretary of state, warned yesterday that some nations are "making short-term gains" by flouting global trade rules, in an apparent swipe at China amid ongoing trade rows.

"No nation is perfect when it comes to safeguarding (trade) principles, including my own - we all recognise the temptation to bend them," Mrs Clinton told business leaders in Hong Kong yesterday as she wrapped up an Asian tour.

"Some nations are making short-term gains doing that."

Mrs Clinton added that "a number of nations, wealthy in the aggregate but often poorer per capita, might even think the rules don't apply to them".

She did not name China, but her calls for "rigorous reforms" in global trade come as tensions between Washington and Beijing continue to simmer over several issues, from China's currency to export restrictions.

Some US firms have complained about restrictions on doing business in China while Washington has led calls for Beijing to boost the value of its yuan currency, which critics say is artificially undervalued to boost Chinese exports.

China's politically sensitive trade surplus, a sore spot for its major trading partners, the US and Europe, expanded to $22.27 billion (Dh81.73bn) in June, rising sharply from the previous month as the value of exports hit a record high.

Mrs Clinton said: "We must seek a free system, one in which ideas, information, products and capital can flow unimpeded by unnecessary or unjust barriers. The US believes that these (fair trade) principles should apply to us - and to all."

Some firms are "forced to trade away their intellectual property just to enter or expand in a foreign market, or when vital supply chains are blocked", she said. "These kinds of actions undermine fair competition."

Foreign companies routinely accuse China of stealing their technology or forcing them to reveal trade secrets in order to access the local market, charges which Beijing denies.

While Americans must "save more and spend less," Mrs Clinton said Asian countries should base their long-term growth on "stronger and broader-based domestic demand" instead of just relying on exports to fuel their economies.