GENEVA: Chinese Ambassador to the World Trade Organization (WTO) Sun Zhenyu voiced China's concerns on Wednesday over US trade policies and urged the United States to respond to these concerns.

"While we have full confidence in further developing bilateral economic and trade relations, China holds some concerns about US trade policies," Sun told a WTO review which is looking at US trade policies over the past two years.

An export port in Nanjing is seen in this photo taken on January 1, 2006. [newsphoto/file]

He said China's major concerns include the "twin deficits" of trade and finance, fulfilment of transparency obligations, fair implementation of anti-dumping measures and foreign investment restrictions in the service sector.

According to the ambassador, the United States, the most frequent user of the WTO dispute settlement mechanism, is always quick to demand compliance from others when WTO rulings are in its favour, but fails to meet WTO "prompt compliance" requirements when rulings are against its interests.

He also accused the US of undermining the world trading system by using national security concerns "in an excessive way" to get around the rules, saying that this had significantly affected the flow of international trade operations and foreign direct investment (FDI). "Recently the US exerted pressure and imposed restrictions on incoming FDI, on account of national security, which prevents foreign companies from seeking mergers and acquisitions within the country. These restrictions have dealt heavy blows to members' confidence in the business environment of the US," he said.

"By interpreting and applying WTO national security clauses in an excessive way, it has again seriously undermined the credibility of the multilateral trade regime, over which China is highly concerned," he stressed.

The ambassador pointed out that it was not wise for the US to restrict the export of high-tech products to China, as it had deprived many American high-tech enterprises of the opportunity to do business with China.

"This policy not only harmed the interests of American exporters, but made trade deficit situations even worse between the two countries."

The ambassador also criticized the frequent use of anti-dumping measures by the US, noting that quite a number of those practices were not consistent with WTO anti-dumping rules.

He also urged the US to assume greater responsibility in pushing forward the Doha round of global trade negotiations, which is expected to conclude by the end of this year but still faces huge challenges.

The US should make further steps forward in cutting domestic support for agriculture, thereby making due contributions to the progress of the Doha round negotiations, he said.

All WTO members undergo periodic reviews of their trade policies by the Geneva-based trade body, and China was not the only one to express concerns over the US trade policy, especially its use of national security concerns as a reason to block trade deals.

The European Union, the United States' biggest trading partner, noted that there was a need to strike "a better balance" between security concerns and avoiding "unnecessary and costly burdens" to legitimate business, in a statement to the WTO.