Obama in China: Why not more US export jobs?

Many US companies, such as General Motors and Proctor & Gamble, have done well in China. Last spring, for example, Mattel opened in Shanghai its first dedicated store in the world for selling its Barbie dolls. But the market share for foreign firms remains low compared with their potential in such a huge country.

While the US has its own protectionist measures, China still has far to go in treating foreign companies fairly – from more transparency in its bureaucracy to stronger enforcement of intellectual-property rights. In a World Bank comparison of countries in terms of their "ease of doing business," China ranks 89th out of 183 countries – just above Zambia and close behind Serbia and Pakistan.

The days are gone when US warships could just show up on the shores of an Asian nation and demand that it open its borders to trade – as Cdre. Matthew Perry did with Japan in 1853 with his "Black Ships." But a modern US president has many levers to use with Beijing, and they go beyond simply using the WTO to resolve disputes, which can take years.

China, for instance, wants the US to recognize it as a "market economy" well before a 2016 deadline required under a WTO agreement. Such a designation would allow China to import certain technologies that have either civilian or military uses. The US can also do more in currency markets to force China to stop manipulating its currency, the yuan, a practice that clearly favors exports over imports.

While China is the largest foreign holder of US Treasuries, it needs the US economy to do well in order to keep the value of those holdings. Obama could have persuaded his hosts in Beijing to boost the US economy by welcoming more American imports.

On Dec. 3, Obama plans to hold a "jobs summit" at the White House in hopes of finding new ways to bring down a 10.2 percent unemployment rate. With exports being the only bright spot in US manufacturing right now, he needs to use the summit to come up with stronger ways to further open China's trade doors.

It looks as if a visit to Beijing isn't enough.

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