The Trump administration is putting together a package of anti-China measures, including tariffs on at least an annual $30 billion of Chinese imports, to pressure Beijing to end requirements that US companies transfer technology to Chinese firms. The measures, which are expected to be announced in the next week or two, arise from administration findings that China has violated US intellectual property laws and has unfairly pressured U.S. companies to transfer technology.
Some in US business circles argue that limiting Chinese investment could backfire. Instead of liberalizing investment rules, Beijing could simply make its restrictions permanent. “Reciprocity, as a concept is fine, but it has to be applied carefully to advance US goals,” said Erin Ennis, senior vice president of the US-China Business Council, a trade group.