ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, May 15, 1996 TAG: 9605150060
SECTION: BUSINESS PAGE: BUSINESS EDITION: METRO
DATELINE: WASHINGTON
SOURCE: ASSOCIATED PRESS
The Clinton administration is set to target Chinese textile and electronics equipment for high import duties in tooth-for-a-tooth retaliation for China's churning out of pirated music disks and computer software.
Talks in Beijing to give Chinese officials a chance to rebut the U.S. allegations of pirating failed to persuade the administration to hold back on sanctions, a senior U.S. official said Tuesday.
The Chinese are accused of more than $2 billion in piracy, mostly of music tapes, compact discs and CD-ROM computer software. The number of fake CDs being made in China has risen to 200 million, officials said.
``We have to protect American manufacturers,'' said State Department spokesman Nicholas Burns. ``We are being ripped off.''
The administration today will announce a list of Chinese products on which it will impose a 100 percent tariff, essentially doubling the items' price at the border, said a senior U.S. official, speaking on the condition of not being identified.
Initially, about $3 billion worth of imports will be targeted, but that amount will be winnowed down to something over $2 billion to match the amount of economic harm being done from pirated electronics software, according to U.S. trade sources.
The sanctions will not take effect until after a 30-day comment period that will allow U.S. importers to appeal the inclusion of certain products. This period also gives U.S. and Chinese negotiators time to possibly reach a last-minute agreement over the piracy issue.
How much of the increased cost would be passed onto consumers was unclear.
But the action could produce a boon for American apparel manufacturers hurt by inexpensive Chinese imports. For President Clinton, trying to make headway in the textile-rich South, it could be a political dividend in his race for reelection.
At the same time, American clothing retailers could be hurt.
The National Retail Federation accused the administration of unfairly singled out textile and apparel products ``for the benefit of Hollywood moguls'' who would benefit by stemming the pirating of music and video discs.
``There simply is no easy or cost-effective way to replace the goods on which the U.S. will impose these tariffs,'' said Tracy Mullin, the federation's president.
Under threat of sanctions, China signed a trade accord in March 1995 banning software piracy.
``Quite a bit of piracy continues,'' said one senior U.S. official, requesting anonymity. ``We think the Chinese understand their obligations and can deal with it.''
While an agreement could still be worked out, White House press secretary Mike McCurry sounded generally pessimistic about the outcome of the talks held Monday and Tuesday in Beijing.
``I haven't heard anything to indicate they have made a lot of progress,'' he told reporters.
``We believe it is in the interest of the United States and China to resolve these trade disputes amicably,'' McCurry said. ``We have to enforce the law, but we remain hopeful we can resolve this conflict short of tit-for-tat retaliation.''
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