Majority of US companies back Trump in tariff war

AMERICAN companies want negotiations with Beijing to win them better access to its state-dominated economy, not just a smaller Chinese trade surplus, with Washington’s punitive tariffs kept in place while talks proceed, a business group said yesterday.

Companies that responded to a questionnaire last week want an end to Chinese pressure to hand over technology, unequal enforcement of laws and other chronic problems, said Tim Stratford, American Chamber of Commerce chairperson in China.

If not, he said, their losses in a tariff war “will be a tremendous waste”.

The comments appear to reflect support for President Donald Trump and other US officials including Trade Representative Robert Lighthizer who want changes in industrial policy Beijing’s trading partners say violate its free-trade obligations.

Others worry China might be allowed to limit such changes in exchange for narrowing its politically volatile trade surplus with the US through higher purchases of soy beans and other exports.

“If we don’t address the underlying structural issues, we will have continued trade frictions,” Stratford said.

Trump’s dramatic decision in July to increase duties on Chinese imports split the US business world.

Some companies support the move to force Beijing into negotiations while others complain the tariffs are too costly and disruptive.

A total of 43% of 150 companies that responded to a questionnaire last week want to keep Trump’s punitive tariffs of 10% on $200billion (R2.7 trillion) of Chinese goods in place while negotiations go ahead, Stratford said.

He said nearly 10% want Trump to go ahead on Friday with a planned increase to 25%.

Trump announced on Sunday he would postpone the March 1 increase.

Both governments said they made progress on technology transfer, protection of intellectual property rights and non-tariff barriers.

Companies that responded to the questionnaire said they wanted guarantees Chinese anti-monopoly and other laws will be enforced equally against them and local competitors, according to Stratford. He said they wanted an end to pressure to hand over technology and a role in setting official industrial standards.

“We want a deal that really addresses the persistent problems.

“There are mixed feelings about the tariffs. The majority are in favour,” said Stratford.” | AP African News Agency (ANA)