Chinese language President Xi Jinping and U.S. President Donald Trump.
Jim Watson | AFP | Getty Pictures
China has already taken “all efforts” — together with passing a new foreign investment law in March — to deal with some issues that the overseas enterprise neighborhood complained about, mentioned Wang, the founder and president of Beijing-based suppose tank, Middle for China and Globalization.
The brand new legislation prohibits compelled switch of expertise from foreign-invested companies in China and steps up safety of mental property, Wang instructed CNBC’s “Squawk Box” on Tuesday. He mentioned that it additionally provides abroad firms equal footing with home gamers — which addresses “precisely the issues of the U.S. administration.”
“It is unrealistic to vary the entire set of legal guidelines in China — no nation can try this, however we now have really handed a brand new legislation,” he mentioned. “So, I believe there’s nonetheless grounds to work there to deal with all of the issues the U.S. might have.”
However some analysts have mentioned that the brand new legislation — set to be applied in January subsequent yr — would not go far sufficient and is probably not enough to appease Washington.
Barely two months after the passing of the legislation, Trump blamed China for backpedaling on some commitments it made throughout earlier negotiations.
The president said Beijing “broke the deal.” Washington subsequently raised tariffs on Chinese language items, and U.S. Treasury Secretary Steven Mnuchin later revealed an settlement was “about 90% of the way there” to being finalized.
The commerce warfare has escalated once more since then, with either side slapping punitive tariffs on one another’s items this month — with additional levies anticipated within the coming months. That has led a number of consultants to decrease their expectations that the world’s two largest economies may attain a deal earlier than the U.S. presidential election in 2020.
Wang mentioned there’s now “some fatigue” with the best way Trump has “time and again” raised tariffs on Chinese language items, which has made it “awkward” for either side. However Beijing has all the time maintained that it is keen to speak, he added, so “it is as much as the U.S. to actually go forward and be versatile and never take a extremely harsh perspective on this.”
“We can’t have an ideal deal,” mentioned Wang. “You may see that China has continued to open not for the U.S.’s sake and curiosity, however for China itself.”
“I believe that for the U.S., they must see the progress China is making after which in all probability work on that momentum to push China to be extra open, moderately than put China right into a a tough place.”
A number of consultants have mentioned that the U.S. has raised some legitimate factors about China and its enterprise practices. Nonetheless, they identified that the best way the Trump administration is addressing these issues — akin to by airing their criticisms in public and backing China right into a nook — is probably not efficient.
— CNBC’s Evelyn Cheng contributed to this report.