Gary Locke´s remarks, in a speech in Beijing, came ahead of key trade talks between the two countries which start Sunday.[break]
Analysts expect Beijing´s currency controls, market access restrictions and lax intellectual property rights protection to top the agenda for the annual meeting of the US-China Joint Commission on Commerce and Trade.
"China´s current business climate is frankly causing growing frustrations among foreign business and government leaders," Locke said, according to a transcript released by the US embassy.
He criticised a lack of transparency in Chinese government policy and urged Beijing to abolish limits on foreign investment, like requiring joint ventures in some sectors as a requirement for market entry.
Locke added "substantial" barriers remained for foreign firms investing in the energy, financial services and telecommunications sectors, while they were virtually barred from mining, power generation and transportation.
"These policies are ultimately counter-productive, preventing China from receiving the capital, the technology, the management expertise and jobs that would come with a more open investment environment," he said.
The US envoy also called on Beijing to improve its protection of intellectual property, saying American and other foreign companies lose billions of US dollars annually from theft in China.
Repeating similar remarks by US President Barack Obama in recent days, Locke said China should let its yuan currency gain more rapidly against the US dollar.
"Market reforms in China and global economic growth could be further enhanced by allowing China´s exchange rate to appreciate more rapidly," he said.
Obama on Sunday said China has not done enough to allow the yuan to reach a fair market level. US officials say an under-valued yuan has brought a flood of cheap Chinese exports, causing the US trade deficit with China to swell.
Chinese state media reacted angrily to Obama´s comments, made after an Asia-Pacific Economic Cooperation summit, accusing him of "scapegoating" Beijing for his country´s economic woes.
Related story
China to impose visa restrictions on U.S. citizens over Tibet
-1778746562.webp)
