Trade policy probe: China lashes Trump
It accuses him of violating international agreements
CHINA has criticised President Donald Trump’s order for a possible US trade investigation of Beijing’s technology policies as a violation of global rules and said yesterday it will “resolutely safeguard” Chinese interests.
Trade groups for technology companies welcomed Trump’s order on Monday, but the Chinese Commerce Ministry said it violated the spirit of international trade and Washington’s World Trade Organisation (WTO) commitments. The ministry said Beijing will take “all appropriate measures” if Chinese companies are hurt, but gave no details.
Trump told US trade officials to look into the launch of a formal investigation into whether Beijing improperly requires foreign companies to hand over technology in exchange for market access.
“If the US side disregards multilateral trade rules and takes action to damage the economic and trade relations between the two sides, then the Chinese side will never sit back and will take all appropriate measures to resolutely safeguard the legitimate rights and interests of the Chinese side,” said a Commerce Ministry statement.
Beijing requires carmakers and other foreign companies in China to work through joint ventures, usually with stateowned partners. They often are required to give technology to partners that might become competitors.
Conditions More than 20 percent of 100 US companies that responded to a survey by the US-China Business Council, an industry group, said they were asked to transfer technology within the past three years as a condition of market access, according to Jake Parker, the group vice-president for China operations.
“We don’t believe market access should be contingent on transferring technology,” said Parker. “It goes counter to China’s WTO commitments.”
Foreign business groups complain companies are being squeezed out of promising Chinese markets or pressured into handing over technology for electric cars and other emerging industries.
Trump said in April that he was setting aside trade disputes, while Washington and Beijing worked together to persuade North Korea to give up its nuclear weapons development. But US officials have resumed criticising Chinese policy in recent weeks.
“The White House is right to make clear all options are on the table,” said Robert D Atkinson, president of the Information Technology and Innovation Foundation, an industry group based in Washington.
China’s Commerce Ministry complained that Trump’s order was “strong unilateralism”, which violated the spirit of multinational trade agreements.
“We believe the US side should strictly adhere to commitments and should not become the destroyer of multilateral rules,” said the statement.
Prior to Monday’s order, the Chinese Foreign Ministry appealed to Trump to avoid a “trade war”. The state-owned China Daily said an investigation could “intensify tensions”, especially over intellectual property.
Parker noted former president Barack Obama had ordered a similar investigation of Chinese policy on green technology in 2010, which ended in a negotiated settlement.
“It didn’t lead to any unilateral sanctions against the Chinese,” said Parker. “Nor did it undermine the overall USChina trade relationship.” – AP