Beyond Technology Transfer: Reducing Investment Restrictions in China
U.S. Treasury Secretary Steven Mnuchin will be travelling to China soon to take part in trade and investment negotiations. The U.S. is currently threatening to tariff $150 billion worth of Chinese goods unless greater market access for American companies in China is achieved. The President of China, Xi Jinping, recently announced plans to reduce foreign investment restrictions in the auto and financial sectors. While this is a good start, China needs to more fully open its markets. Secretary Mnuchin should demand Beijing remove prohibitions on foreign investment and requirements that foreign companies enter into joint ventures with Chinese partners.