After the growing frustrations on the part of foreign companies about their ability to compete honestly with Chinese companies, the United States and China were drawn into the trade tensions of last year.
Under US President Donald Trump, the rhetoric of the tribe was originally focused on the US trade deficit with China. This led to $ 250 billion in import tariffs from China, to which Beijing contributed $ 110 billion in customs duties to the United States. Over the past few months, negotiations between both parties have increasingly focused on intellectual property protection and forced transfer requirements Technology
A little detail on the progress of the negotiations was made public. On the eve of this week, Chinese state media reported that the leaders of both trade delegations conducted a phone call in the morning in Beijing and made "significant progress."
A few hours later, the symbolic gathering of delegates approved a new law on foreign investment. It took about three months after the NPC Standing Committee began asking for comments on its first project.
"It's in a hurry," said Lester Ross, chairman of the American Chamber of Commerce's policy in China. Telephone Interview with CNBC on Thursday. "This does not provide adequate time for AmCham's public comments (and foreign companies). The law has been developed in a fairly general way."
Ross also noted that the draft gave China the right to take measures against a particular country to restrict Chinese politics. companies. "The law offers a wider payback," said Ross, who is also a partner at Wilmer Cutler Pickering Hale and Dorr Law Firm.
This provision essentially enhances the unequal conditions that foreign and Chinese companies have in accessing each other's countries. American companies have complained that they receive less access to China than Chinese companies in America.
But the Chinese government is clearly trying to show that it has in mind the interests of foreigners. In the last minute, Beijing has even added a new language that provides further protection for the commercial and commercial secrets of foreign companies, according to the final draft, reviewed by the American-Chinese Business Council.
Information on foreign companies takes a much more rigorous deterrent against counterfeiting and theft (intellectual property) and will offer new opportunities for protection (intellectual property), "said Jake Parker, China's Vice President of Operations in the American-Chinese Business Council.
He noted that the council was "satisfied" with the new language. He warned that "performance will be a key indicator of success, but the business community has collectively advocated for many years to punish the Chinese government for violations (intellectual property), we must recognize this positive progress in this direction."
The law should be put into effect on January 1
Generally, for foreign companies that already see opportunities to profit from the world's second largest economy, The law gives them more incentives to China, Ross said: "It's moving in a good direction. It's almost far enough."