THE top US trade official threatened yesterday to take China to the World Trade Organisation (WTO) if it backtracked on its promises to open up key industries, amid concern that economic nationalism is rising in Beijing.

Susan Schwab, the US Trade Representative, said that calls by Chinese officials for closer scrutiny of foreign investment could set back the country’s growth.

“We’ll be watching for substantive developments that would indicate a resurgence of economic nationalism,” Ms Schwab said. At a meeting with business leaders, she said it was essential that China meet its commitments to the WTO, which include a 2001 pledge to open up banking and insurance to foreign firms by the end of this year.

“We do not enjoy bringing WTO cases,” she said. “What we want is to resolve these issues before they require litigation, but when good-faith dialogue does not yield positive results, we cannot stand by and allow commitments to go unrequited.”

Ms Schwab raised the issue of US access to the financial services market with Bo Xilai, the Chinese Commerce Minister.

Other US complaints focused on China’s weak enforcement of intellectual property rights and barriers to US firms in its domestic markets for express delivery, beef and telecoms.

She said that, while China had made improvements in fighting piracy of films, software and other patented and copyrighted products, much remained to be done.

Explore Economics

• Pre-Budget Report 2008

• Budget 2009

• World Economic Forum

• The Times MPC

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts