Encouraging signs for US-China business ties in cloud computing access talks
- US Chamber of Commerce expresses hope at China Institute panel discussion as trade war talks near conclusion
- Chinese concessions on intellectual property and access to markets address key industry concerns
Signs that Beijing is addressing issues including financial support for domestic tech industry players, access to key markets – cloud computing in particular – suggest that US-China business ties might grow again, Jeremie Waterman, president of the US Chamber of Commerce’s China Centre, said.
“I think China is listening,” Waterman said in a panel discussion at the 2019 China Institute Executive Summit in New York.
“I think the two sides are working very hard. It’s not the usual practice to have shuttle diplomacy going on at the level of cabinet-level officials, and certainly with Vice-Premier Liu He going back and forth, so I think that’s very encouraging, and the reported progress on cloud, that’s also encouraging.”
Trade deal ‘won’t get done without action on tech transfers’
Bloomberg News and The Wall Street Journal have reported this week that China has offered to open its cloud computing sector to foreign companies in a bid to conclude a deal that will end a bilateral trade war that started last year.
US demands for the enforcement mechanism and the establishment of the offices have been a major challenge in reaching an accord, with Beijing concerned that checks on its policies by US officials would crimp its sovereignty.
Mnuchin’s comments provided more detail to testimony in February by US Trade Representative Robert Lighthizer to the House ways and means committee. Lighthizer said then that Beijing had agreed to an enforcement mechanism that ensured China followed through on promised reforms if a deal to end the trade war was reached.
The mechanism would consist of monthly meetings at the office director level, quarterly meetings at the vice-ministerial level and semi-annual gatherings at the ministerial level, with these last meetings convened by Lighthizer and Liu, the top US trade negotiator testified.
Intellectual property cases in China jumped by 40 per cent in 2018
At the China Institute event on Thursday, Waterman said China had already been moving towards reforms that addressed the main concerns of tech companies.
“The trend over the past couple of years in terms of IP protection and IP enforcement is that there’s been progress and there continues to be progress,” he said.
“It’s not an accident that when ambassador Lighthizer goes up on the floor of Capitol Hill to talk about the nature of the negotiation he was very open in saying they’re making real progress on IP protection issues.
“There will be an IP protection and enforcement chapter or component of a potential agreement,” the US Chamber official said. “That reflects … the Chinese leadership recognising that competing in a higher level of the economy, and creating a more innovation-driven economy, is something that’s in the Chinese interest.”
