Majority Ownership Key to US in Trade Talks With China
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.