Majority Ownership Key to US in Trade Talks With China

The United States hopes to convince China into letting American investors hold a majority stake in Chinese ventures, Larry Kudlow, President Donald Trump’s top economic adviser, said Thursday.

The demand will be part of formal trade talks between the US and China to begin Saturday in Beijing.

“American businesses, in many cases, are forced to go into joint ventures with Chinese companies in order to produce,” Mr. Kudlow said in a radio interview.

And because US companies are prohibited from having any more than a 49% stake, the Chinese owners can “force the transfer of technology to these new companies they create.”

“The only way to stop the transfer of technology is to give American companies ownership, move up to 51%, move up to 55% and move up to 100%, then we won’t be forced to lay the blueprints on the table and open up the tech door,” Mr. Kudlow said.

Whether that will happen is up in the air. China has criticized any proposed controls as a violation of global trade rules.

America First

  China, ownership, talks, technology, trade, US Beijing

The following two tabs change content below.

• Bio
• Latest Posts

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

Latest posts by Paul Ebeling (see all)

• Travel, It is Never Too Late, You are Never Too Old - December 13, 2018
• Staying Healthy in Winter - December 13, 2018
• US Congress Quietly Passed a Law that Likely Signals a ‘Boom’ for the $1-B Cannabis-based CBD Industry - December 12, 2018