American Companies Worry US-Chinese Ties Will Worsen

American companies want negotiations with Beijing to win them better access to its state-dominated economy, not just a smaller Chinese trade surplus, with Washington’s punitive tariffs kept in place while talks proceed, a business group said this week.

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Companies that responded to a questionnaire last week want an end to Chinese pressure to hand over technology, unequal enforcement of laws and other chronic problems, said Tim Stratford, chairman of the American Chamber of Commerce in China. If not, he said, their losses in a tariff war “will be a tremendous waste.”

The comments appear to reflect support for President Donald Trump and other U.S. officials including Trade Representative Robert Lighthizer who want changes in industrial policy

Beijing’s trading partners say violate its freetrade obligations. Others worry China might be allowed to limit such changes in exchange for narrowing its politically volatile trade surplus with the United States through higher purchases of soybeans and other exports.

“If we don’t address the underlying structural issues, we will have continued trade frictions,” Stratford said in an interview.

Trump’s dramatic decision in July to hike duties on Chinese imports split the U.S. business world. Some companies support the move to force Beijing into negotiations while others complain the tariffs are too costly and disruptive.