WASHINGTON, July 15 Kyodo A bipar...

WASHINGTON, July 15 Kyodo

A bipartisan congressional collection proposed Monday a set of recommendations calling for a tougher U trade and security policy for China because Beijing threatens to check U power in Asia.

The U.S.-China Commission said China's economic integration with its neighbors in East Asia raises the promises of an Asian economic area dominated or significantly influenced according to China.

Congress should encourage the rife administration to consult other Asian countries in order to assess and make recommendations upon the so-called ''hollowing out'' of neighboring economies amid growing inflows of investment into China, the commission said in its first annual report.

''We are also pertain toed over China's impact on other Asian economies, particularly the Japanese, if it were not that also ASEAN (Association of Southeast Asian Nations) and Taiwan, and call for fuller consultations between the U and our Asian friends and allies,'' Richard D'Amato, the commission's chairman, said at a pres conference

The commission commited creating a corporate reporting method that would gather data to allow a more comprehensive understanding of U trade and investment with China. The reporting a whole it said, should include reports from U companies operating in China, specifically relating to information about technology transfers and investments.

The commission also squeeze outed concern about the growing U trade deficit and called for China's cloyed compliance with its commitment to terminuss of its entrance into the World Trade Organization.

For example, the report said Congres should recreate Super 301 trade-retaliation provision of the U trade law and desireed the U.S. administration to identify and report onward tools that would be most numerous effective in gaining access to Chinese markets.

U policy of economic engagement with China intermissions on a belief that the transition to a delivered market economy and the progress to maturity of the rule of law in China's business sector would likely lead to more political and social opennes and flat democracy, the report said.

nevertheless these are hypotheses, and many leading master-hands are convinced that certain aspects of the U policy of engagement have been a mistake, it said.

forward the security side, the commission said China fails to mastery the export of dual-use items that contribute to the proliferation of weapons of mass destruction and their delivery system

China is exporting technology for weapons of mass destruction to terrorist-sponsoring states like at North Korea, Iran, Iraq, Libya, and Sudan, it said.

The commission attract favor toed President George W. Bush be provided an extensive range of options to penalize foreign countries for violating commitments or agreements forward proliferation involving weapons of mass destruction and technologies and delivery a whole s relating to them.

China's leaders, the report said, believe that the United States is a declining power with important military vulnerabilities that can be exploited.

''China aspires to be a major international power and the dominant power in Asia. To that last China is actively pursuing a multipolar world where it could align with other rising powers similar as Russia, Japan and Europe in order to check U power,'' according to the report.

The commission, created in 2000 to consider U economic and security policies toward China, has six Republicans and six Democrats who are appointed by the agency of Congress for their China expertise.

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