• June 25, 2024

China Considering A Law To Restrain Forced Technology Transfers

Reportedly, China is considering a new rule on foreign investment that will focus on the illegality of forced technology transfers, the process of which has been the main complaint from Washington between the current tariffs spat between the two largest economies globally. Multiple regional outlets reported on the under debate law, and Chinese news agency Caixin stated that the present draft calls for the ban of local administrations “forcing foreign trades to transfer technology or illegitimately restricting their market entry.”

The draft rule has been interpreted by some as a step from Beijing to deal with complaints cultivated by the U.S. and others regarding the way China conducts foreign companies hoping to do trade in the country. Those complaints, coupled with a huge trade imbalance amid the two global superpowers, have caused the ongoing tariff dispute that has agitated global markets. China for has long preserved that forced technology transfers are not in its policy—and do not happen whatsoever—yet government groups and foreign business assert that the practice has endured nevertheless. A new rule from the country’s essential authority might do little to suppress concerns regarding what many explain as a command of unwritten rules that oblige companies’ hands.

Speaking of the ongoing trade battle, apparently, China has imported zero soybeans from the U.S. in the month November of this year for the first time ever since the trade war began. That indicates the universal largest soybean purchaser has imported no US supplies. As an alternative, China has inclined on Brazilian imports to restore the U.S. cargoes, customs data showed recently. China has fetched 5.07 million tons of soybeans in November from Brazil—up by over 80% from 2.76 million tons a year ago—information from the GAC (General Administration of Customs) showed.

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