An American industry group representing a consortium of American companies like Apple, Amazon, Google etc has mentioned that Chinese rules on trade are unreasonable. The groups have pointed at China’s regulations on inbound investment as one of the primary concerns for American companies.
It is alleged that since China requires every company to share their technology before selling products in the region, the local manufacturers can get access to American technologies and then replicate them in the region. Erin Ennis, senior vice-president of the US-China Business Council mentioned that the new regulations could place “unreasonable and discriminatory burdens” on American companies.
Ennis talked about this at a public hearing set up to garner details on a pending trade investigation. On the need to transfer technology details to the authorities, Ennis said it’s “an acute concern of American companies in key sectors, who often must make difficult choices about managing the trade-off of technology sharing and access to the world’s second-largest economy.”
President Trump is expected to raise this issue with Chinese President Xi Jinping when they meet next month. The entire inquiry could take a year or even more, though, so the companies aren’t getting their hopes up with regards to a resolution.
This was the first hearing held in unanimous support of US Trade Representative Robert Lighthizer’s inquiry on China’s alleged theft of intellectual property.
[Via Business Insider]Like this post? Share it!