The economic and trade negotiations between the two largest economies in the world have deteriorated sharply. US senior trade officials said on Monday that China’s important commitments in trade negotiations have retreated, prompting President Trump to threaten to increase China’s tariffs on exports to the United States.
Trump announced that it will raise $200 billion in tariffs on Chinese exports to the United States. However, the two sides will continue trade negotiations this week.
The United States requires China to change its economic policies and amend relevant laws to better protect US intellectual property rights, end compulsory US corporate transfer of technology, and stop stealing US trade secrets through the Internet.
**Is China’s new foreign investment law important? **
China accelerated the introduction of the first foreign investment law in March and will take effect on January 1, 2020.
Prime Minister Li Keqiang promised that the government will implement the protection of foreign rights and interests of the law.
According to the latest draft, the law will prohibit compulsory technology transfer and the government illegally “intervene” foreign business operations.
The previous draft version stipulated that illegal officials would be subject to criminal penalties, and the final revised version reinforces those terms.
Foreign investors welcome this law in principle, but the biggest concern is implementation.
A Western executive in Beijing told Reuters that the law was regarded as "public relations operation" at most, with the intention of eliminating the US accusation that the US companies were unfairly treated in China.
"It's all a trick," the executive said when he mentioned whether the law would really work.
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