July 25, 2007
News Release 07-077
Inv. No. 332-491
Contact: Peg O'Laughlin, 202-205-1819


The U.S. International Trade Commission (ITC or Commission) has launched the second of three investigations on U.S.-China trade, as requested by the U.S. House of Representatives' Committee on Ways and Means.

The ITC, an independent, nonpartisan, factfinding federal agency, was originally asked by the Committee to complete a three-report series that collectively would provide an in-depth assessment of the U.S.-China trade and investment relationship and the U.S.-Asia-Pacific trade and investment relationship. In a letter received on May 29, 2007, the Committee asked the Commission to add additional components to the investigation in order to provide an in-depth assessment of the causes of the U.S.-China trade imbalance and whether and to what extent the People's Republic of China uses various forms of government intervention to promote investment, employment, and exports. The Commission instituted the first report, China: Description of Selected Government Practices and Policies Affecting Decision-Making in the Economy, on June 21, 2007.

In its second report, China: Government Policies Affecting U.S. Trade in Selected Sectors, the Commission will build on the first China study by comprehensively cataloguing and, where possible, quantifying the government policies and interventions described in the first study in specific sectors, as requested by the Committee.

The Commission will include case studies on sectors where leading U.S. exports have not penetrated the Chinese market and on sectors that are the primary drivers of the U.S.-China trade deficit. The second study will also include case studies on sectors where government policies and interventions are prevalent, including the semiconductor, telecommunications, banking, textiles and apparel, steel, automotive parts, and aircraft sectors. Where applicable, the case studies will identify how China's policies and actions are exacerbating existing global overcapacity in specific sectors.

In addition, this study will include a discussion of the impediments and factors driving the growth in U.S.-China trade information that was originally sought as the second study of the Committee's original request.

The Commission will submit its second report to the Committee by July 29, 2008.

The ITC will hold a public hearing in connection with the investigation at 9:30 a.m. on October 30, 2007. Requests to appear at the public hearing should be filed with the Secretary, United States International Trade Commission, 500 E Street SW, Washington, DC 20436, and must be received no later than 5:15 p.m. on October 16, 2007.

The ITC also welcomes written submissions for the record. Written submissions (one original and 14 copies) should be addressed to the Secretary, U.S. International Trade Commission, at the above address and should be filed at the earliest practical date, but no later than 5:15 p.m. on February 1, 2008. All written submissions, except for confidential business information, will be available for public inspection.

Further information on the scope of this investigation and appropriate submissions is available in the ITC's notice of investigation, dated July 25, 2007, which may be obtained from the ITC Internet site (www.usitc.gov) or by contacting the Office of the Secretary at 202-205-2000.

ITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the Senate Committee on Finance, or the House Committee on Ways and Means. The resulting reports convey the Commission's objective findings and independent analyses on the subject investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the ITC submits its findings and analyses to the requester. General factfinding investigations reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

-- 30 --