The United States hopes to strong-arm China into letting American investors hold a majority stake in Chinese ventures, says Larry Kudlow, President Donald Trump’s top economic adviser.
The demand will be part of formal trade talks between the U.S. and China to begin Saturday in Beijing.
“American businesses, in many cases, are forced to go into joint ventures with Chinese companies in order to produce,” Kudlow said on “The John Batchelor Show,” a nationally syndicated radio program.
And because U.S. companies are prohibited from having any more than a 49 percent stake, the Chinese owners can “force the transfer of technology to these new companies they create.”
“The only way to stop the transfer of technology is to give American companies ownership, move up to 51 percent, move up to 55 percent and move up to 100 percent, then we won’t be forced to lay the blueprints on the table and open up the tech door,” Kudlow told Batchelor.
Whether that will happen is up in the air. China has criticized any proposed controls as a violation of global trade rules.
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