NO MORE MR. NICE GUY WITH CHINA?

Infused by a new lineup of officials at the Treasury and State Departments and facing mounting pressure from Congress and Wall Street over the soaring global trade deficit, the Bush team is taking a fresh look at US relations with China. What's likely to emerge is a more aggressive approach toward the Asian giant that places a higher premium on righting the lopsided trading ties between the two countries. Among the possible options: stepped-up pressure on Beijing, both bilaterally and multilaterally, to let its undervalued currency rise, and increased use of US trade laws to counter damaging increases in imports from China. The Administration already took a step down that path on Apr 3, when it launched an investigation into whether to re-impose quotas on surging imports of Chinese clothing following the end of a global textile pact last year. Congress, too, is agitating for a tougher stance. On Apr 6, the Senate, by a 67-33 margin, took China to task for using its cheap currency to fuel exports by refusing to kill a proposal to slap huge import tariffs on Chinese goods if Beijing didn't adjust its exchange rate.