U.S. business lobby calls on China to play fair, warns of consumer
boycott danger
Send a link to a friend
[May 11, 2021] BEIJING
(Reuters) -China should implement its commitments to equal treatment for
foreign business and abandon "implicit" guidance to replace foreign
products with domestic alternatives, the American Chamber of Commerce in
China said on Tuesday.
In an annual white paper, the chamber, also known as AmCham, which
represents 900 companies, also called on the United States and China to
communicate more and cooperate on climate change and public health.
The relationship between the world's two biggest economies deteriorated
rapidly over the past few years over issues ranging from trade to
China's response to COVID-19.
When ties worsen, U.S. firms see poorer implementation of regulations
promising equal treatment for foreign business, affecting investment
project approvals and market access, said Greg Gilligan, chairman of
AmCham China.
![](http://archives.lincolndailynews.com/2021/May/11/images/ads/current/christianvillage_sda_SPONSOR_042720.png)
"We feel that local officials are reacting to the levels of tension in
the relationship and just taking the safer path which is to offer
preference to domestic industry," he said, speaking at a news conference
on Tuesday.
American companies were also "rightfully concerned" about the
possibility of consumer boycotts in China and needed to do scenario
planning for it, he said.
In March Sweden's H&M and other foreign brands met with a furious online
backlash and boycotts after they raised concerns about forced labour in
China's western Xinjiang region.
Foreign businesses in China have long complained about limited market
access, opaque regulatory processes, the favouring of domestic champions
and state-owned companies, and weakness in intellectual property
protection.
Beijing has repeatedly said it treats foreign and domestic firms equally
and welcomes foreign investment. The government is meanwhile also trying
to spur domestic innovation and reduce reliance on foreign technology
and markets.
Legislation promising equal treatment for foreign and domestic companies
is only unevenly implemented, said the paper, which also called for
emerging sectors like cloud computing to be opened up to foreign
companies.
[to top of second column] |
![](../images/051121PIX/busine13.jpg)
U.S. and Chinese flags are seen before a meeting between senior
defence officials from both countries at the Pentagon in Arlington,
Virginia, U.S., November 9, 2018. REUTERS/Yuri Gripas/File Photo
![](http://archives.lincolndailynews.com/2021/May/11/images/ads/current/fcs_funeral_lda082613.png)
"The government should abandon the use of implicit, unpublished, or
internal guidance to replace U.S. or other foreign-made
products/services with domestically made equivalents," it said.
U.S. President Joe Biden says competition with China is the greatest
foreign policy challenge the United States faces. Democrats and
Republicans alike have moved toward a harder line on Beijing.
U.S.-China tensions were seen as a challenge to doing business in China
for 78% of companies polled by AmCham, according to a survey released in
March.
U.S. Trade Representative Katherine Tai said last week she expected to
engage "in the near term" with Chinese officials to assess their
implementation of the Phase 1 trade deal between the two countries, with
the outcome to influence the fate of Washington's punitive tariffs on
Beijing.
Tai and other senior Biden administration officials are conducting a
top-to-bottom review of U.S.-China trade policy. Trump launched a tariff
war between the world's two largest economies in 2018. Washington and
Beijing signed the Phase 1 trade deal in January 2020.
The pact, which expires at the end of 2021, called for China to boost
purchases of U.S. exports by $200 billion over two years - a target that
Beijing is far behind in meeting, partly due to the coronavirus
pandemic.
![](http://archives.lincolndailynews.com/2021/May/11/images/ads/current/cca_laptop-sda021709.png)
China also pledged to toughen intellectual property protections, and
improve agriculture biotechnology and financial services access for U.S.
firms.
(Reporting by Gabriel Crossley; Editing by Stephen Coates)
[© 2021 Thomson Reuters. All rights
reserved.] Copyright 2021 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content. |