US will push China to let its firms hold majority stakes in companies, says Trump economic adviser Larry Kudlow
American government and business have long complained that restrictions on equity holdings are used to force technology transfers
The United States will pressure China to allow US investors to hold a majority stake in their Chinese ventures in the latest round of trade talks, according to Larry Kudlow, a senior economic adviser to Donald Trump.
The US advance team for the trade talks landed in Beijing on Wednesday afternoon and preparatory discussions are under way ahead of the start of the formal talks on Saturday.
Chinese observers have said Beijing was expected to continue loosening restrictions on foreign investors and companies at its own pace rather than yielding to US pressure – especially given Trump’s inconsistent approach towards China.
The Trump administration has accused Beijing of using restrictions on ownership and technology licensing, which prevent foreign companies holding a majority stake, to force US investors to transfer their most sophisticated technology to their Chinese joint venture partners.
Foreign businesses have complained that mandatory technology transfers are rife in the car, semiconductor and new energy industries.