China should address US concerns on investment and tech transfer to defuse trade war, says World Bank
- Washington-based international development bank sees only modest decline in 2019 Chinese growth rate, but advises cut in business taxes to support the economy
- It also advises Beijing to strengthen the social safety net to improve consumer confidence and household spending
China should address the concerns expressed by the United States and other major trading partners over forced transfer of technology and openness to investment to de-escalate ongoing trade tensions, the World Bank advised on Thursday.
In addition, Beijing’s forthcoming domestic economic stimulus plan should focus on tax cuts and strengthen the social safety net to increase consumer confidence and household spending, the international development bank said in its latest “China Economic Update” report.
“While continuing the dialogue with the US administration, China could intensify its efforts to address trading partners’ concerns over technology transfer and reciprocity in investment conditions,” the Washington-based bank suggested.
At the same time, the bank endorsed Beijing’s reform performance by boosting the standing of the country’s business environment to 46th out of 190, up from 78th, in its “Doing Business 2019” report.
The bank’s comments came as US and Chinese officials are holding a series of preliminary talks to prepare for formal negotiations, likely in January, to attempt to negotiate a deal to resolve the US complaints at the heart of the current trade war, including the large bilateral trade imbalance, forced technology transfer, intellectual property protection, the “Made in China 2025” high-tech industrial strategy and state subsidies to favoured industries.
