The United States and China are attempting again on Wednesday (30.1.2019) to disengage from a damaging trade war with a new round of high-level talks aimed at bridging deep differences over China's intellectual property and technology transfer policies.
Cabinet-level officials, led by Chinese Vice Premier Liu He and U.S. Trade Representative Robert Lighthizer, began two days of talks next to the White House. They come with one month remaining of a 90-day trade truce agreed in December by President Donald Trump and Chinese President Xi Jinping.
Intellectual Property
People familiar with the talks and trade experts watching them say that so far, There has been little sign that Chinese officials are willing to address fundamental U.S. demands to protect intellectual property rights. Americans and policies that Washington says force their companies to transfer technology to Chinese firms.
The Trump administration used the US complaints, along with allegations of cyber theft of trade secrets and a systematic campaign to acquire American technology companies, to justify punitive US tariffs on $250.000 billion worth of Chinese imports.
Trump has threatened to raise tariffs on $200.000 billion of goods to 25% from 10% on March 2 if a deal cannot be reached.. It has also threatened new tariffs on all other Chinese goods shipped to the United States. China retaliated with its own tariffs but has suspended some and is allowing some purchases of U.S. soybeans during the talks.
«Clearly, on structural concerns, about forced technology transfer, there remains a significant gap if there is not a large chasm between the two sides."a person familiar with the talks told Reuters.
Chinese officials deny that their policies coerce technology transfers.
They have emphasized steps already taken, including lowering auto tariffs and a foreign investment bill that improves access for foreign companies and promises to ban “administrative means to force technology transfer.”
China is fast-tracking the new law, and the country's parliament is likely to largely approve it in March.
A crucial component of any progress in the talks, according to senior administration officials, is agreement on a mechanism to verify and “enforce” China’s follow-through on any reform promises it makes. This could keep the threat of U.S. tariffs on Chinese goods at bay for the long term.
Source: Reuters
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
