The U.S. - China Trade War and negotiations seem to drag on forever, casting a bleak and uncertain outlook for the relationship between the two countries. Lately, I keep getting the question, " will there be a trade deal or not?" As an opportunist, I am confident that there will be a deal.
What I care more about, however, is beyond the trade deal. The U.S. has been confronting Chinese government on such issues as lack of enforcement of IP protection and even theft, forced technology transfer and unfair trade practices.
No matter all the accusations are grounded or not it is time for China to step up to make improvement. There is always room for it. In the past decade or two, China has focused on growing its economy, at a neck-breaking speed. The government and the people are getting somehow complacent with the accomplishment. Trump and his administration, intentionally or unintentionally, has created an opportunity for China to pause, reflect and make efforts to fix things.
As a direct outcome of the trade war, new laws have just been passed at the congress meeting. These laws address the issues head-on. For example, Chinese companies are now not allowed to force foreign companies to transfer technology as a condition to set up a joint venture or to operate in China. The laws reiterate the importance of protecting intellectual property. In most industries, foreign companies will enjoy similar benefits with Chinese companies, among which the open-up of the financial market is unprecedented --- S&P won the approval to offer credit-rating services in China, first of its kind in China; just announced, the first foreign controlled bank joint venture was formed in China between ING and Beijing Bank, to name a couple, and more to come.
All these are long-awaited!
In Chinese language, crisis is expressed in two characters 危机 (risk and opportunity). The U.S.- China Trade War is bringing about some positive changes in China. I am confident that the U.S. and China will reach a deal, even if not, I still cheer for the undergoing changes.