China says it will use ‘all possible means’ to defend its firms against US trade investigation
Beijing has released guidelines for Chinese companies to manage overseas trade, restricting investment in some sectors and completely banning it in others.
China on Thursday said it will use “all possible means” to defend the interests of the country and its companies against a United States investigation into its overseas trade practices, Reuters reported. Commerce Ministry official Gao Feng said Beijing will not stop supporting overseas investments by Chinese firms, but deals and projects related to the One Belt. One Road initiative will be monitored.
On August 18, China had released guidelines to manage overseas trade. It restricted Chinese investment in certain sectors and outright banned it in others. Mergers and acquisitions linked to the OBOR initiative have been growing.
“We will further improve the overseas investment reporting management system,” said Gao, indicating that the Chinese government intends to regulate such activities.
On August 14, US President Donald Trump authorised an inquiry into China’s alleged theft of intellectual property. US Trade Representative Robert Lighthizer has a year’s time to look into the allegations that China’s trade policies on intellectual property were harming US businesses and jobs.
The Commission on the Theft of American Intellectual Property has estimated that the US economy loses up to $600 billion (about Rs 38.4 lakh crore) every year because of counterfeit goods, pirated software and theft of trade secrets. The commission claimed that China was the world’s bigger intellectual property infringer, responsible for 87% of counterfeit goods entering the US.
