China Says U.S. Backsliding on Trade, Warns on Google

China charged the U.S. with "backsliding" toward protectionism and said companies must comply with foreign laws in the aftermath of Google's threat to pull out of the country.

The U.S. use of trade remedies against China in 2009 was "unreasonable," Ministry of Commerce spokesman Yao Jian said at a briefing in Beijing today. Multinationals' parent countries, including "Google's home country" should step up oversight of overseas businesses, he said. The U.S. may take formal measures against China after Google this week said it was targeted by cyber attacks from the nation, a State Department official said, speaking on condition of anonymity. Yao's comments signal China's confidence that the dispute won't deter companies and came as a government report showed foreign direct investment more than doubled last month. "China's recovery means that the nation's growth rate will lead the major economies by an even bigger margin," said Qu Hong bin, chief China economist at SBC Holdings PC in Hong Kong. "Thus China's appeal -- strong economic fundamentals and the world's most populous consumer market."