Rogue Nation

US business group urges Washington to 'use every arrow' against China

Reuters

The United States should "use every arrow" in its quiver to ensure a level commercial playing field in China, a U.S. business lobby said on Tuesday, warning that 2017 could be the toughest year in decades for American firms in the country.
China's policies designed to support domestic companies and create national champions have narrowed the space for foreign companies, the American Chamber of Commerce in China said in its annual business climate report.
The White House has said U.S and Chinese officials are fleshing out a pledge by Donald Trump and Xi Jinping for a 100-day plan to cut the U.S. trade deficit with China, which reached $347 billion last year.
But the chamber said it hoped more attention would be paid to market access for American firms in China.
"Right now basically we are recommending everything you have in your quiver -- please use every arrow possible," chamber chairman William Zarit said, referring to possible backlash from Beijing.
He was speaking at a briefing on the report.
U.S. business groups want U.S. officials to take measures against Beijing on market imbalances.
More vociferous complaints from the American business community mark a shift from years past, when many companies eschewed the idea of forceful action by Washington for fear of retribution by China.
Foreign technology companies, in particular, fear what they see as Beijing's plans to pump billions of dollars in subsidies into domestic competitors and push regulations that could force the surrender of key technology or hit competitiveness.
"With uncertainty stemming from political and economic transitions in both the U.S. and China, perceptions of a deteriorating investment environment for foreign companies in China, and a slowing economy, 2017 will likely be one of the most challenging years in decades for U.S. companies in China," the chamber said in its report.
U.S. business leaders also worry that Trump's focus on curtailing North Korea's nuclear and missile programmes could undercut U.S. commercial interests in China. 

Last week, Trump tweeted that Beijing would get a better trade deal if it helped resolve the U.S. problem with Pyongyang.
"I'm sorry to see there is a possibility we may lose some momentum on helping to level the playing field with China in our economic relationship, due to the situation in North Korea, if there is some kind of trade-off," Zarit said.

“Don't listen to what Xi Jinping says, but look at what he does

The EU Calls on Xi Jinping to Put His Words into Action
Reuters

The European Union urged China on Wednesday to make "concrete progress" in opening its markets to global investment, after Xi Jinping decried protectionism in a speech at the recent World Economic Forum in Davos, Switzerland.

"A speech is a speech and actions are actions," said Hans Dietmar Schweisgut, EU Ambassador to China, adding that he would be "surprised" if Xi was able to translate words into action.
At Davos last week, Xi called for "inclusive globalization" and for global unity, saying "self-isolation will benefit no-one," two days before the inauguration of U.S. President Donald Trump.
During that week, China's cabinet issued measures to further open the economy to foreign investment, including easing limits on investment in banks and other financial institutions.
No further details were provided, nor a timetable for their implementation.
So far, the EU has not seen "sufficient signs that China will be willing to grant reciprocity of market access to European companies," Schweisgut told reporters in Beijing.
In June 2016, the European Chamber of Commerce in China warned that foreign companies face an increasingly hostile environment in China, with fewer than half its members saying they planned to expand operations in the world's second-largest economy.
Billionaire investor Wilbur Ross, Trump's choice for commerce secretary, has called China the "most protectionist" country in the world, and said China's officials "talk much more about free trade than they actually practice."
Trump has previously criticized China's trade practices and threatened to impose punitive tariffs on Chinese imports.
China has said it is confident it can resolve trade disputes with the new U.S. government, though some state media and government advisors have warned that U.S. aircraft manufacturers, automobile companies and agricultural products could be caught in the cross-fire of increased trade tensions.
When asked whether Europe saw any opportunities in China's warnings of punitive measures against the U.S., Schweisgut said this was "interesting speculation" but that he did not know enough about Trump's trade policy plans to comment.