China puts off licences for US companies amid tariff battle with Washington, says US-China Business Council official
Cabinet-level officials told US-China Business Council representatives they are putting off accepting applications ‘until the trajectory of the US-China relationship improves and stabilises,’ says an official from the business group
China is putting off accepting licence applications from American companies in financial services and other industries until Washington makes progress toward a settlement of the ongoing trade war, an official of a business group said Tuesday.
The disclosure is the first public confirmation of US companies’ fears that their operations in China or access to its markets might be disrupted by the battle over Beijing’s technology policy.
China is running out of American imports for penalties in response to US President Donald Trump’s tariff hikes, which has prompted worries that Chinese regulators might target operations of US companies.
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The licence delay applies to industries Beijing has promised to open to foreign competitors, according to Jacob Parker, vice-president for China operations of the US-China Business Council. The group represents some 200 American companies that do business with China.
There seem to be domestic political pressures that are working against the perception of US companies receiving benefits
In meetings over the past three weeks, Cabinet-level officials told USCBC representatives they are putting off accepting applications “until the trajectory of the US-China relationship improves and stabilises”, Parker said.
Chinese authorities have promised to increase foreign access to areas including banking, securities, insurance and asset management.
“There seem to be domestic political pressures that are working against the perception of US companies receiving benefits” during the dispute, Parker said.
As for what improvement might entail, Parker said Chinese officials want an end to Trump’s tariff hikes and a negotiated settlement. He declined to identify the officials but, in a sign Beijing wants foreign companies to help lobby Washington, said the meetings represented “unprecedented access” for his group.
Beijing matched Trump’s earlier tariff increase on US$50 billion of imports but is running out of American goods for retaliation. Trump is poised to decide whether to raise duties on US$200 billion of Chinese goods.