Of defense has noted while china is a key long term

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of Defense has noted, while China is a key long-term strategic competitor, “competition does not mean conflict is inevitable, or preclude cooperation with China on areas of mutual interests.” 63 USTR affirmed this scope for mutually beneficial cooperation with China on trade, stating that its goal is for “a trade relationship with China that is fair, reciprocal, and balanced,” stressing that the reforms the U.S. is requesting of China will benefit China as well as build a stronger global economy. 64 In seeking mutually beneficial outcomes, the U.S. should take a comprehensive approach to the negotiations, using a combination of actions the U.S. could undertake through bilateral negotiations with China, multilaterally through the WTO, and working with allies outside the WTO, as well unilateral actions. In taking this multifaceted strategy, the U.S. should aim for long-term, market-orientated solutions, while also strengthening the global trading system and rule of law.
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The US-China economic relationship: A comprehensive approach 17 Bilateral negotiations U.S.-China bilateral outcomes need to be verifiable, enforceable, and market-based—not simply a restatement of prior Chinese commitments such as to do better on IP protection and enforce- ment or forced technology transfer or to buy more U.S. products. The bilateral track should include assurances from China to implement all of its WTO commitments and commitments to additional WTO plus reform as well as renewed efforts to complete a comprehensive BIT. Where feasible, enforcement should be through the WTO dispute settlement mechanism and recourse to arbitration under Article 25 of the DSU could be used to produce speedier results. Assurances by China to live up to its WTO commitments In its WTO Protocol of Accession in 2001, China made commitments to the fundamental principles of the international trading system as well as a whole host of specific commitments. Indeed, China has taken WTO commitments in a number of areas that if implemented fully would go some way to addressing U.S. concerns, including with respect to technology transfer, IP protection, and use of subsidies. 65 Yet, and as noted above, China’s implementation of its WTO commitments has been, at best, mixed. 66 The U.S. should prioritize China’s reaffirmation of its WTO commitments in the context of bilateral talks. The U.S. and China should also resolve continued application of NME methodology to China for purposes of anti-dumping and counter- vailing duty (CVD) trade remedy actions. In addition, the bilateral deal should seek to address Chinese economic practices not covered by WTO commitments and that have major impacts on the U.S. economy, such as SOEs and access to subsidies. Having a mechanism to ensure compliance will be critical to concretize these commitments. The U.S. and China could agree to resort to Article 25 of the WTO DSU for noncompliance with any bilateral deal struck which allows for “expeditious arbitration within the WTO as an alternative means of dispute settlement…that concern issues that are clearly defined by both parties.”
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