The country’s top economic official, Premier Li Keqiang, promised at a news conference on March 20 there will be “no mandatory requirement for technology transfers.” However, Chinese officials already deny foreign companies are required to hand over technology, leaving it unclear how policy might change.
Trump ordered U.S. trade officials on March 22 to bring a WTO case challenging Chinese technology licensing. It proposed 25 percent tariffs on Chinese products including aerospace, communications technology and machinery and said Washington will step up restrictions on Chinese investment in key U.S. technology sectors.
Beijing has yet to say how it might respond.
Trump administration officials have identified as potential targets 1,300 product lines worth about $48 billion. That list will be open to a 30-day comment period for businesses.
The volleys of threats are “a process of game-playing to test each other’s bottom lines,” said Tu Xinquan, a trade expert at the University of International Business and Economics in Beijing.
