World Trade Organization chief Pascal Lamy yesterday refused to take sides in trade disputes between China and the United States, saying he had to remain neutral.

However, Lamy said the trade relationship between the two WTO members had both "economic and political sides".

China this week criticized a revised US regulation which tightens controls on hi-tech exports to the country, saying it would affect two-way trade.

Washington will slap restrictions on up to 20 categories of technology to China with possible military end-use, including lasers and navigation systems.

The move prompted a curt response from Ministry of Commerce spokesman Yao Shenhong, who said the US regulation would impose "irrational barriers" on bilateral trade.

Speaking on the sidelines of the International Association of Economic and Social Councils forum in Beijing, Lamy said that when two WTO members disagreed, he had to take a neutral stance.

Lamy, however, did say there were WTO "exceptions" that dealt with defense and national security matters.

"The moment (disputing sides) go to a litigation system, I have to remain silent as we have a court which adjudicates disputes," he told China Daily.

The WTO chief did, however, offer a description of the current situation in the two countries.

"The US consumer is not saving enough and the Chinese consumer is saving too much," he said. "That is the economic reality."

Earlier yesterday in an address to the Beijing forum, Lamy said the world community was experiencing a "new stage of globalization", comparing the accelerated expansion of market capitalism to the 19th century industrial revolution.

He said one of the most important challenges of globalization was to ensure its benefits were more fairly and widely shared, particularly for developing countries.

He urged the need to conclude the deadlocked Doha Round of global trade talks, as they were crucial to controlling and harnessing globalization and ensuring sustainable development.

"The millions being lifted out of poverty in China and India are living testimony to that," he said.

(China Daily June 21, 2007)