http://seattletimes.nwsource.com/html/nationworld/2001915423_uschina29.htmlWASHINGTON — The Bush administration said yesterday it has decided not to investigate allegations of Chinese labor-rights violations and currency manipulation, arguing that
diplomatic engagement is a better way to combat America's record trade deficit with China.
Some business groups praised the decision, saying the administration had exhibited political courage, especially in an election year where rising anxiety over job losses to foreign competition has become a major issue. The United States ran up a record $124 billion trade deficit with China last year.
But the AFL-CIO, which had petitioned the government to take its labor rights' case, blasted the decision as "an outrage and an insult."
"Accepting these petitions would take us down a path of economic isolationism," said U.S. Trade Representative Robert Zoellick. "That is a path we will not take."
The administration rejected a petition the AFL-CIO filed last month contending that China's abuse of worker rights amounted to an unfair trade practice under Section 301 of U.S. trade laws that had given China a wage advantage of between 47 and 86 percent and had cost the loss of an estimated 727,000 U.S. factory jobs.