The Office of the United States Trade Representative has released its annual trade estimate report on Foreign Trade barriers. US trade with China remains a major concern.
The US says the trading policies in many countries put American companies at a disadvantage.
Among the US trade office's concerns - China's failure to enforce international copyright laws on movies, music and computer programs.
US Commerce Secretary Carlos Gutierrez said China needs to do more to encourage foreign investors.
Mr. Carlos Gutierrez said, "Although there is an enormous upside for companies doing business in here, the reality of the trade with China continues to fall short of the tremendous potential that this country has."
The US has filed formal complaints against China for levying unfair taxes on US-made auto parts, which trade officials say makes American and other non-Chinese automobiles less competitive.
Gutierrez warns that China's failure to address US concerns will isolate China.
Mr. Carlos Gutierrez said, "There is real protectionist and isolationist sentiment creeping up, evolving, emerging in our country. That is not good for trading relationships around the world."
The US says China's trade policies, along with its undervalued currency, have led to the massive trade deficit with China which reached an all time high of 202-billion dollars last year.
US lawmakers have postponed a vote on possible tariffs against Chinese goods, pending the outcome of talks between US and Chinese officials.
The annual report, which monitors 62 international trading partners, was also critical of Japan's refusal to open its markets to US beef and the European Union's subsidies to commercial aircraft manufacturers.
