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US authorities have warned US companies operating in China of future pain as the first round of tariffs threatens an expected trade war between the two countries, according to US sources. Companies should be ready for short-term spinoffs, suggesting that the trade conflict with China could last for a while, but would be in their long-term interest.
US companies feared to be victims of the commercial confrontation, fearing to be subjected to reprisals such as delays in the approval of Chinese licenses, prolonged reviews of takeovers and the exclusion of public markets. [19659002SomeAmericancompanieshavealreadybeennotifiedbytheChineseauthoritiesofrequestsforAmericanframesasothermembersoftheAmericanbusinesscourt
Senior Chinese officials have sought to allay these fears. Tuesday, Liao Min, deputy director of the bureau of the Central Commission for Financial and Economic Affairs and member of the Chinese negotiating team in trade, met with representatives of US companies in Beijing.
Two sources informed the meeting: Chinese officials were "open" on the issue and stressed that China would continue to open up its economy. Relations between Chinese officials and US companies have been strengthened after a meeting between Chinese President Xi Jinping and a group of American and European business leaders last week. . At the meeting, Xi said China's door to the outside world would open even more but he also warned that China would defend itself if the United States took tough measures.
Tensions were restored earlier this month when Washington announced plans to lift tariffs of 25 percent on Chinese products as of July 6. Beijing fought back with the threat of rights on an equivalent amount of US products. [19659002TheUSPresidentDonaldTrumpamenacedoimposeadditionaldutiesonChineseproductsupto$450billionandPekinapromisetoapply"qualitativeandquantitative"countermeasures
$ 400 billion worth of merchandise to the United States, giving it a limited ability to match Washington with punitive tariffs.
But US investment in China exceeds Chinese investment in America. At the end of last year, US companies had "significantly more historical investments" in China [US $ 256 billion] than Chinese firms in the US, according to a report from the National Committee of China Relations and the Rhodium group in April
. China sends Donald Trump a message on free trade and the WTO
China can not match the United States on a comparable basis – it does not buy the same value of American products – but it could put pressure on multinational companies. have activities in China to influence US policymakers and mitigate trade tension.
US companies worry that the pain may go through indirect routes, and some badysts have suggested that US companies in areas such as pharmaceuticals, cars and airplanes Commercial sources have indicated that Time was running out for both countries to avoid the introduction of punitive tariffs before the July 6 deadline, but China and the US were likely to resume talks In a report released on Tuesday, Shunsuke Kobayashi and Yota Hirono, of the Japan-based Daiwa Research Institute, said the mid-term elections in November could be a factor in reaching an agreement
. "Trump feels the need to demonstrate some success … in trade policy before that date to fulfill an election promise, the last of which was left unanswered," the report says.
he said that a kind of agreement could be reached before the 40th anniversary of China's reform and opening.
The former official said that a trade war with the United States would take a bit of the anniversary's sparkle this year. in Beijing must reach an agreement with the United States before the celebration. "
One of the American sources said that China could announce a" substantial "opening for the anniversary, but foreign companies wanted quick action. opening, China released Thursday night a revised "negative list" for foreign investment, reducing from 63 to 48 the number of business sectors banned foreign players. expansion of foreign business activity in finance , transportation, professional services and automobile and aeronautics.
The revised list was to be unveiled at the end of June, but that date coincided with the announcement of investment restrictions. Yuan falls for the eleventh consecutive day as the Chinese central bank prepares for a trade war with the United States
The US-China Business Council said that the scale of the opening would depend on follow-up regulation
. Requirements in the past have limited the full realization of openings in certain areas, "said the council.
" In addition, the new list maintains restrictions on foreign ownership in certain sectors such as the cloud. computer, that the Chinese government considers a sensitive sector for national security. "
Trump said Wednesday that he would be relying on a strengthened US Foreign Investment Committee to review and contain Chinese investment in sensitive US technology, a softening of the previous proposal to impose additional restrictions specifically targeting China
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