BEIJING (Reuters) – China will eliminate all restrictions on foreign investments not included in its self-styled “negative lists,” a vice commerce minister said on Tuesday, and also will “neither explicitly nor implicitly” force foreign investors and companies to transfer technologies.
FILE PHOTO: Chinese Vice Commerce Minister and Deputy China International Trade Representative Wang Shouwen attends a news conference ahead of the 70th founding anniversary of the People’s Republic of China, in Beijing, China September 29, 2019. REUTERS/Jason Lee
The statement to a news conference in Beijing by Wang Shouwen signalled possible upcoming directives.
Technology transfers have been a major source of tension between China and the United States, which have been embroiled in a trade war for over a year.
The ‘negative lists’ specify industries in which investors, foreign or domestic, are restricted or prohibited.
“We will move faster to open up the financial industry,” said Wang, eliminating all restrictions on the scope of business for foreign banks, securities companies and fund managers.
Policies will also be fine-tuned to ensure foreign and domestic players have equal market access to manufacturing new-energy vehicles, he said.
The new measures are intended to ensure stable foreign investment and create a transparent, predictable investment environment, Wang said.
The U.S.-China Business Council said forced technology transfer requirements and investment restrictions that required joint ventures were a concern for many of its more than 200 member companies.
“We are encouraged by the vice minister’s statement on eliminating forced technology transfer requirements in the China market,” said Jake Parker, the group’s senior vice president. “We look forward to these new liberalizations quickly resulting in transparent regulatory reviews that lead to licenses granted after narrowly defined review timelines.”
Chief U.S. and Chinese trade negotiators talked on the phone recently and will speak again soon, Geng Shuang, China’s Foreign Ministry spokesman, told a separate news conference. He did not give a timeframe.
U.S. President Donald Trump agreed this month to cancel an Oct. 15 hike in tariffs on $250 billion in Chinese goods as part of a tentative agreement on agricultural purchases, increased access to China’s financial services markets, better protections for intellectual property rights and a currency pact.
Leaders of the world’s two biggest economies are working to agree on the text for a “Phase one” trade agreement announced by Trump on Oct. 11.
Trump has said he hopes to sign the deal with China’s President Xi Jinping next month at a summit in Chile, but a U.S. administration official said on Tuesday the text of the deal might not be completed in time.
White House spokesman Judd Deere said both sides were still working to complete work on the interim deal.
Reporting by Huizhong Wu and Ben Blanchard; additional reporting by Andrea Shalal in Washington; Writing by Gabriel Crossley and Andrea Shalal; editing by John Stonestreet and Dan Grebler