U.S. upset over Chinese trade ruling

WASHINGTON, Nov. 16 (UPI) -- The Bush administration is crying foul over a recent Chinese directive which seems to favor Chinese industries over foreign competitors, a report says.

A case in point concerns medical devices such as X-rays and pacemakers, an industry in which Americans have been having a lot of success with China sales, the New York Times said.

The June directive called for burdensome new safety inspections for foreign-made medical devices, but excluded China from the new restrictions.

Moreover, it seemed part of a recent pattern in which Chinese officials issue new rules aimed at favoring Chinese industries, the Times said.

Myron Brilliant, vice president for Asia at the U.S. Chamber of Commerce, called the apparent movement "not only a threat to foreign investors but it also undermines China's transition to a market-based economy."

The American concerns are shared in Europe, also upset about the trade deficit with China.

And, it's a situation expected to stir up things when U.S. Treasury Secretary Henry M. Paulson Jr. heads to China in December for more economic dialogue.