By JAMES FINK
jfink@bizjournals.com | 716-541-1611

With President Obama meeting this week with his Chinese counterpart, President Hu Jintao, Sen. Charles Schumer wants to make sure that the long-standing issue of unfair trade practices remains at the forefront of their talks.

Schumer, who was in Buffalo and Rochester on Tuesday, said the Chinese government encourages unfair practices such as forcing high prices that American companies must pay for raw materials. Schumer cited Ceno Technology Inc., a fast-growing firm on the Buffalo Niagara Medical Campus, as an example of those affected by the trade practices.

"China is like the bully in the schoolyard," Schumer said. "It's about time that someone stood up to them, and that's the United States."

Ceno relies on rare earth metallic elements such as as gadolinium for high-tech products that have applications in medical and other fields. China controls 97 percent of the gadolinium output and the price it charges for the product rose in recent years from $200 to $600 per kilogram.

"China is trying to manipulate the market," Schumer said. "It is hurting startup companies like Ceno."

He voiced his concerns to U.S. Trade Rep. Ron Kirk and Commerce Secretary Gary Locke. New York's senior senator said he hopes the unfair trade practices take center stage at the presidential meeting.

"Western New York workers can compete with China, but not if it doesn't play fair," Schumer said.

In the best-case scenario, he said he hopes Obama can persuade Jintao to change his country's practices. China is the second-largest economy behind the United States. The two countries are key trading partners and rely on each other for resources and finances.

"Talking to them is not good enough," Schumer said. "We're in a trade war now and we're losing. The Chinese government needs us more than we need them."