China tightened trade regime in 2009 - report

A loader destroys pirated publications during a campaign against piracy in Xi'an, Shaanxi province April 22, 2009 file photo.

WASHINGTON (Reuters) - The United States saw additional evidence in 2009 that China was moving towards a more restrictive trade regime, but talks with Beijing also produced concrete results, U.S. trade officials said on Tuesday.

"China continued to pursue industrial policies in 2009 that seek to limit market access for non-Chinese origin goods and foreign service suppliers," the U.S. Trade Representative's office said in an eighth annual report on how well China is complying with its World Trade Organisation obligations.

"In some areas, it appears that China has yet to fully implement important commitments, and in other areas, significant questions have arisen regarding China's adherence to ongoing WTO obligations, including core WTO principles," it said.

The report, the first issued by President Barack Obama's administration, tempered its criticism by saying China made "concrete" progress this year on trade irritants in areas ranging from agriculture to clean energy to government procurement.

Based on that cooperation, "the United States is optimistic that significant progress is obtainable in 2010," USTR said.

Still, it expressed frustration that after years of U.S. complaints, some issues showed little progress.

"Despite repeated anti-piracy campaigns in China and an increasing number of civil IPR (intellectual property rights) cases in China, counterfeiting and piracy remain at unacceptably high levels," USTR said.

An estimated $3.5 billion (2.2 billion pounds) in losses to U.S. software and music companies in China in 2008 "indicate little or no overall improvement from the previous year," the report said.

Even in areas such as agriculture, where China has largely fulfilled U.S. market access hopes, it said unpredictable actions by Chinese officials were a concern.

(Reporting by Doug Palmer; Editing by Vicki Allen)