US business lobby calls on China to show loyalty
BEIJING, May 11 (Reuters) – China is expected to implement its commitments to equal treatment for foreign companies and abandon “implicit” guidelines to replace foreign products with domestic alternatives, the Chinese government said on Tuesday. American Chamber of Commerce in China.
In an annual white paper, the chamber, also known as AmCham, which represents 900 companies, also called on the United States and China to communicate more and cooperate on climate change and public health.
The relationship between the world’s two largest economies has deteriorated rapidly in recent years on issues ranging from trade to China’s response to COVID-19.
Foreign companies in China have long complained about limited market access, opaque regulatory processes, the preference of domestic champions and state-owned enterprises, and weak intellectual property protection.
Beijing has repeatedly stated that it treats foreign and domestic companies equally and welcomes foreign investment. The government is also trying to stimulate domestic innovation and reduce reliance on technology and foreign markets.
Legislation promising equal treatment for foreign and domestic companies is only implemented unevenly, according to the newspaper, which also called for opening up emerging sectors such as cloud computing to foreign companies.
âThe government should abandon the use of implied, unpublished or internal guidelines to replace US or foreign products / services with locally made equivalents,â he said.
US President Joe Biden has repeatedly identified competition with China as the biggest foreign policy challenge the United States faces. He and his fellow Democrats as well as opposition Republicans have all moved towards a harder line in relations with Beijing.
US-China tensions were seen as a challenge to doing business in China for 78% of companies polled by AmCham, according to a poll released in March.
U.S. Trade Representative Katherine Tai said last week she plans to engage “in the short term” with Chinese authorities to assess their implementation of the phase 1 trade agreement between the two countries, with the result of influencing the fate of Washington’s punitive tariffs on Beijing.
Tai and other senior officials in the Biden administration are leading a top-down review of U.S.-China trade policy. Trump launched a tariff war between the world’s two largest economies in 2018. Washington and Beijing signed the Phase 1 trade deal in January 2020.
The pact, which expires at the end of 2021, called on China to increase its purchases of US exports by $ 200 billion over two years – a target Beijing is far from reaching, in part because of the coronavirus pandemic .
China has also pledged to strengthen intellectual property protections and improve access to agricultural biotechnology and financial services for US businesses. (Reporting by Gabriel Crossley; Editing by Stephen Coates)