US rules out trade talks unless China addresses IP concerns

The US is refusing to engage in any trade talks with China until Beijing produces a clear plan to address Washington’s concerns over alleged IP theft, the Wall Street Journal reports.

Trade negotiations stalled in September when a planned Chinese visit to Washington was pulled in response to a new round of US tariffs. According to the Journal, China has since made repeated efforts to renew negotiations, but has been rebuffed by senior Washington officials including Treasury Undersecretary, David Malpass.

The US is adamant that China is abusing conventions by compelling companies to share IP when investing in its economy- a practice known as forced technology transfers. The issue is at the heart of Washington’s rancour towards China, alongside its growing trade deficit with Beijing.

By implementing tariffs and refusing to engage further, Washington is effectively placing the ball in Beijing’s court. It is hard to see how China can meet such a demand without accepting wrongdoing, increasing the prospect of a protracted trade war. According to CNBC  the impasse could even jeopardise a planned meeting between President Trump and President Xi scheduled for the G-20 at the end of November.

Chinese state media outlet Xinhua ran an editorial on Wednesday saying that China has always treated US concerns with the “utmost patience and sincerity” and put “practical solutions” on the table to avoid trade frictions, the South China Morning Post reports. Clearly, these efforts are not deemed satisfactory by a sceptical White House.