US business groups claim WTO rules cannot stop unfair Chinese trade tactics

US business groups expressed frustration on Wednesday with what they said are China’s efforts to tilt the economic playing field in favour of domestic companies, adding that World Trade Organisation rules are insufficient to police all of Beijing’s trade practises.

US companies face increasing threats from Chinese investment rules, industrial policies, subsidies to state-owned enterprises, excess manufacturing capacity, cybersecurity regulations and forced technology transfers, the groups told a public hearing held by the US Trade Representative’s (USTR) office.

The session will influence an annual report on China’s WTO compliance by the US Trade Representative’s office as well as a USTR investigation into China’s intellectual property practises that could lead to imposition of trade sanctions by President Donald Trump.

Josh Kallmer, senior vice-president of global policy at the Information Technology Industry Council, said China had woven a “tapestry” of rules and policies that places foreign companies at a disadvantage and incentivises the transfer of technology.

“It just in general puts a thumb on the competitive scale in a way that significantly and profoundly affects US-based and foreign companies,” said Kallmer, who was representing a coalition of technology groups from semiconductors to software.