China promises end to forced tech transfers
Rules for firms in finance industry may be relaxed
BEIJING — China on Tuesday promised more improvements in conditions for foreign companies, including an end to officials pressing them to hand over technology, a key point of conflict in its tariff war with Washington.
The announcement adds to a drumbeat of promises for more open markets by the communist government, which is trying to make China’s cooling, state-dominated economy more productive.
Beijing also will ease restrictions on foreign competitors in some newly opened finance businesses, the Commerce Ministry said.
Complaints about Beijing’s technology ambitions helped to spark its tariff war with U.S. President Donald Trump.
Trade negotiators are working out details of an Oct. 11 agreement under which Trump delayed a planned tariff hike on Chinese imports. Trump said Beijing agreed to buy more American farm goods in exchange, though China has yet to confirm details of its commitment.
Business groups welcomed the agreement as a possible step to breaking a deadlock in the 15-month-old conflict, though the two sides have yet to report progress on their core disputes over Beijing’s trade surplus and technology policies.
Those include complaints from Washington, Europe and other trading partners that Chinese development plans are based in part on stealing or pressuring companies to hand over technology.
Authorities will be banned from “explicitly or implicitly” pressuring companies to give up technology, said a ministry official, Ye Wei.
That pledge, if carried out, builds on a law enacted in March that prohibits use of “administrative tools” to force companies to give up industrial secrets.
That still leaves open the question of foreign companies that are required to work through joint ventures with Chinese partners.
A ministry statement also promised to “eliminate all restrictions on the scope of business” of foreign banks, securities companies and fund managers. It pledged to “remove the requirement on total assets” for establishing a foreign-owned bank.”