"China continues to demonstrate a willingness to work with the U.S. business community and government, but we need to see continued, visible, near-term progress," a report by the U.S. Chamber of Commerce on China's compliance with WTO obligations, released Tuesday said. "China can demonstrate its credentials as a constructive member of the global economy by timely and fully implementing its WTO commitments and ensuring full market access."

The United States has been critical of the Chinese government for its growing U.S. trade deficit, rising competition from imports, currency regime and increasing investments abroad.

While the Chinese government has already made some effort in reducing tariffs, revising existing laws and passing new ones to comply with its WTO requirements, the chamber has pointed to a several key areas where China has been deficient like market access, transparency and enforcement of intellectual property rights.

The chamber has been particularly concerned about market access to U.S. companies, calling on China to not only comply with its obligation in this final year of phase-in period, but to move beyond obligation and expand the market even further.

"We need to start looking at market access issues that really deal with the spirit of the WTO. Maybe it's not in the WTO's agreement, but it is part of the principles of the WTO," said Myron Brilliant, vice president of East Asia for the U.S. Chamber.

"China not only needs to apply by international standards, abide by the rule of law, but it also needs to make sure that it has a level playing field, and we are going to keep hammering away at these market access issues," said Brilliant.

In terms of intellectual property, China has already taken initial steps in countering piracy and counterfeiting by implementing new judicial measures. However, statistics from the Economic Crimes Investigation Division, according to the chamber report, paint a much different picture.

The number of criminal arrests and prosecutions for trademark counterfeiting during the first half of 2005 increased as high as 50 to 100 percent. But by U.S. standards, the total number of criminal cases is still too low, and IPR owners continue to report difficulties in bringing criminal actions.

For example, out of the 2,000 administrative enforcement cases brought by Jiangsu IP enforcement in 2004, only two were transferred for criminal investigation.

The chamber has recognized China's willingness to comply, but continues to say that it will monitor its progress throughout this coming year. The chamber, unlike many congressional leaders and the administration, has been more flexible in its handling with China, in refusing protectionist's policies and favoring joint cooperation.

U.S. business leaders called for cautious action from the administration saying that China's entry into the WTO has been beneficial to the economy.

"Despite the work that still remains to be done with China on implementation, the Bush administration should resist calls for precipitous action that would halt or even reverse the progress U.S. companies have made to date in this dynamic market," said John Frisbie, USCBC President.

"The administration should reject the argument that China's entry into the WTO has not benefited the United States. The trend of market opening in China is largely positive, even if significant issues remain."

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