March 23, 2006	Thursday	Safar 22, 1427

GENEVA, March 22: China accused Washington on Wednesday of undermining the world trading system by using national security concerns “in an excessive way” to get around the rules. Addressing a WTO review of US trade policy, China’s ambassador Sun Zhenyu said such actions hurt fellow WTO members’ confidence in the business environment in the US.

“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,” Mr Sun told WTO ambassadors.

Although he cited no examples directly, Mr Sun clearly had in mind last year’s failed bid by state-controlled CNOOC Ltd to take over US oil company Unocal.

CNOOC abandoned the plan after it generated controversy in the United States. An attempt by Dubai Ports World, which is backed by the UAE, to purchase a US ports operator similarly failed earlier this year.

“Recently the United States exerted pressure and imposed restrictions on inward FDI (foreign direct investment) on account of national security, which prevent foreign companies from seeking merger and acquisition (there),” Mr Sun said.

Washington wants action to cut Beijing’s massive trade surplus and it has also warned that it could take China to the WTO over Beijing’s alleged failure to abide by WTO rules, notably on protecting intellectual property. —Reuters