Beijing may relax some foreign investment caps during Trump’s visit
Loosening of ownership caps could come in sectors where Chinese companies already possess a competitive edge as part of wider opening of economy
China could loosen foreign ownership caps for joint ventures in some sectors where Chinese companies already have a competitive edge when US President Donald Trump visits Beijing next month, analysts said.
“This is an area that the US and others have raised with China again and again, and it’s possible that China may be open to concessions” when Trump visits, Scott Kennedy, a China expert at the Washington-based Centre for Security and International Studies, said at an event hosted by the Council on Foreign Relations.
Foreign ownership caps in China vary across industries, with some at 49 per cent, 50 per cent or 20 per cent.
Kennedy’s remarks came as the White House on Monday announced Trump’s itinerary for a seven-day swing through Asia, including a visit to Beijing on November 8 for a series of bilateral, commercial and cultural events and meetings with President Xi Jinping. Trump also will makes stops in Japan, South Korea, Vietnam and the Philippines.
The Trump administration has been pressing China to expand market access and give reciprocal treatment to US companies in China.