China launches campaign to counter US critics >By Guy Dinmore and Scott Heiser in Washington >Published: July 28 2005 00:02 | Last updated: July 28 2005 03:10 >>

China has embarked on a more pro-active campaign to counter criticism in the US of its growing economic and military power, using the visit of a senior official to Washington to make the case in public for a strategic relationship and employing a top US lobbying firm to communicate with Congress.

Addressing a meeting of the US-China Business Council, Tang Jiaxuan, state councillor, said: “Let us take along view from a strategic plane when looking at and handling China US relations.”

China would “gradually” address US concerns over the trade deficit and intellectual property rights, and allow it greater access to services, he said.

“All this will mean boundless opportunities for US businesses,” he added. Mr Tang, a key figure in Chinese efforts to curb North Korea's nuclear ambitions, yesterday also met Condoleezza Rice, US secretary of state.

Talks focused on trade issues, preparations for a summit meeting in September between presidents George W. Bush and Hu Jintao, as well as the crisis over North Korea.

In his address to the business council Mr Tang reiterated Chinese demands that the US give China full market economy status, lift restrictions on commodity and technology exports “and correct the wrong practices of trade protectionism”.

While he made a strong case for how the US and China must develop a strategic relationship in the face of common global threats, US lawmakers were passing a measure that would allow US companies to seek tariffs on unfairly subsidised Chinese imports. The bill had been temporarily blocked by Democrats on Tuesday.

This weekend Robert Zoellick, deputy secretary of state, will travel to Beijing to inaugurate what China is calling a “strategic dialogue”. The US prefers the term “senior dialogue” in deference to the more elevated “strategic” tag it reserves in Asia for Japan and Australia.

Seeking to build political influence in Washington, the Chinese embassy has retained Patton Boggs to lobby on a wide range of issues before Congress, according to a lobbying registration statement filed last week with the US Department of Justice.

The enlistment of Patton Boggs which has also represented such countries as Saudi Arabia, Kuwait and Pakistan highlights China's efforts to respond to the rising wave of anti-Chinese sentiment in Congress. Beyond trade, the ill-feeling is also driven by Chinese threats towards Taiwan and China's rapid military expansion which was highlighted this month by a special Pentagon report mandated by Congress.

Over the past two years, China has significantly expanded its presence in Washington, with Chinese government ministries and even provincial governments hiring several prominent lobbying firms to work on trade issues in particular.

CNOOC has hired Akin Gump and Public Strategies, a well-connected communications firm, to try to fend off congressional concerns over the bid for Unocal.

Patton Boggs confirmed that the firm would provide counsel to the embassy on “congressional matters”. The contract, dated July 11, calls for the embassy to pay a $22,000 monthly retainer for the firm's services.

Robert Kapp, former president of the US-China Business Council commented: “The Chinese are learning to walk the walk and talk the talk, and I don't have a problem with it.”