THREE American business groups appealed to the United States and China yesterday to promote freer trade and reject protectionism amid slowing U.S. economic growth and a widening trade gap with China.

In an annual report on business conditions, American Chambers of Commerce for China, Shanghai and South China rejected calls by some in the United States for punitive measures over China’s trade surplus and currency controls.

“Defending and preserving the openness of the trade relationship should be a core commitment of both the U.S. and Chinese governments,” James Zimmerman, chairman of the American Chamber of Commerce in China, said at a news conference.

“With slowing economic growth in the United States, the focus needs to be on enhancing America’s overall competitiveness, rather than seeking defensive protectionist solutions,” Zimmerman said.

The groups said they will send a 40-member delegation to Washington in May to deliver the report to key lawmakers. Zimmerman said they hope to meet with the U.S. presidential candidates or their aides.

The United States says its trade deficit with China in February was US$18.4 billion, down 9.6 percent from the same month last year but the biggest U.S. gap with any country.

The Chambers of Commerce said U.S. companies are facing sharply rising costs in China. But they said 70 percent of 800 American companies that responded to a survey made money in China in 2007 and many said it is a key market. Some 64 percent said their five-year outlook for China was optimistic, the highest rating.

(SD-Agencies)