US worries about China's state-backed companies

AP News
Posted: May 03, 2011 6:13 PM

A senior U.S. official has voiced concern about privileges enjoyed by China's state-backed enterprises and is saying a level playing field is necessary for American companies.

Undersecretary of State Robert Hormats said Tuesday such enterprises enjoy financial support and regulatory privileges and benefit from government efforts to limit foreign investment in certain sectors.

He said such policies distort competition, and the U.S. was raising the issue with China and encouraging them to adopt international standards.

Hormats said 41 Chinese state-owned enterprises are among the Global Fortune top 500 companies.

He was speaking at the U.S. Chamber of Commerce ahead of a high-level dialogue next week between the U.S. and China on economic and strategic issues.