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

HEFFX

HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

Latest posts by HEFFX (see all)

• Tesla Is Hiring Someone To Defend Elon Musk And Fend Off Attacks By Twitter Trolls - January 20, 2021
• PayPal Will Continue To Profit From A Huge Increase In Volume And Accounts - January 20, 2021
• Google’s Ethical AI Division Investigating Sharing of Sensitive Documents - January 20, 2021