BEIJING, June 2: US Commerce Secretary Carlos Gutierrez warned on Thursday that China risks “an outbreak of protectionism” if current trade tensions are not addressed. While China’s booming textile exports are a gnawing problem, he preferred to focus on piracy in meetings with American businessmen.

“The Bush administration prefers to resolve all trade issues with China through negotiation rather than legislation,” he said in an address to the American Chamber of Commerce.

“No one wins trade wars. Unfortunately, the slow pace of progress risks an outbreak of protectionism. “The absence of results only empowers those within the US political system who are pushing an American retreat from the global economy.”

Gutierrez highlighted Beijing’s slow progress on meeting its commitments to clamp down on piracy, increase regulatory transparency and reduce subsidies to its state-owned enterprises.

“The abuse of intellectual property rights is not acceptable ... everything else is up for negotiation,” he said.

“Intellectual property rights violations are a crime, we do not believe we should be negotiating crime with our trading partners.” Mr Gutierrez arrived in Beijing on Thursday and will hold talks with Vice Premier Wu Yi, Trade Minister Bo Xilai and Planning Minister Ma Kai. He is joined on Saturday by US Trade Representative Rob Portman.

Tensions are running high after the US imposed limits on Chinese textiles. Both Wu and Bo have voiced strong opposition to this, characterizing them as protectionist and a severe blow to ongoing WTO trade liberalization negotiations.

The arrival of the top US trade officials signals Washington’s concern over the issue with intense domestic pressure in the United States about potential textile job losses sparked by the flood of cheap Chinese imports.

On Tuesday, US President George W. Bush called on China to “deal with world trade in a fair way.” The European Union is also moving to impose restrictions on imports of Chinese textiles after shipments surged with the removal of international quotas earlier this year.—AFP