Washington / BeijingIn the trade talks with China, the US is apparently ready to mitigate its demands for the reduction of industrial subsidies. Two sources informed about the state of negotiations, Reuters news agency said. Accordingly, the American negotiators want to move away from the original ideas on the dismantling of state support for companies, so that a success in the negotiations can be achieved next month, for example.
A focus of the negotiations should instead be on more achievable goals, it said. These include an end to the forced transfer of technology, the improved protection of intellectual property and the further opening of the Chinese market.
Dismantling of industrial subsidies is considered difficult as it concerns a core area of Chinese economic policy. The government in Beijing guarantees state-owned companies subsidies and tax breaks. This also applies to sectors of the economy that are considered strategic for the country's longer-term development. Under China's President Xi Jinping, the role of the state in parts of the economy has been strengthened.
"If the US negotiators define as a success that China's economy is changing its ways of working, it will never come to a deal," said one of the sources. "A deal that makes Xi look weak is a worthless deal for Xi. Every deal we get will be better than what we have. "
(t) Trade (t) Economic Policy (t) Foreign Trade Policy (t) Subsidies (t) Mergers & Acquisitions M & A (t) Foreign Investment by Country (t) Industrial Policy (t) Foreign Policy with Land (t) foreign investment (t) foreign trade (t) foreign trade with land