China says US trade probe would violate international rules

Beijing requires automakers and other foreign companies in China to work through joint ventures, usually with state-owned partners. They often are required to give technology to partners who might become competitors.

More than 20 per cent of 100 American companies that responded to a survey by the U.S.-China Business Council, an industry group, said they were asked to transfer technology within the past three years as a condition of market access, according to Jake Parker, the group’s vice-president for China operations.

“We don’t believe market access should be contingent on transferring technology,” said Parker. “It goes counter to China’s WTO commitments.”

Foreign business groups complain companies are being squeezed out of promising Chinese markets or pressured to hand over technology for electric cars and other emerging industries.

Trump said in April he was setting aside trade disputes while Washington and Beijing worked together to persuade North Korea to give up nuclear weapons development. But American officials have resumed criticizing Chinese policy in recent weeks.

“The White House is right to make clear all options are on the table,” said Robert D. Atkinson, president of the Information Technology and Innovation Foundation, an industry group in Washington, in a statement.

Parker noted then-President Barack Obama ordered a similar investigation of Chinese policy on green technology in 2010. That ended in a negotiated settlement.

“It didn’t lead to any unilateral sanctions against the Chinese,” said Parker. “Nor did it undermine the overall U.S.-China trade relationship.”

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Chinese Ministry of Commerce (in Chinese): www.mofcom.gov.cn

Joe McDonald, The Associated Press

by Canadian Press

China says US trade probe would violate international rules

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