World

China hits back at US over trade practices

BEIJING: China hit back yesterday at criticism from the United States about its trade practices, saying some countries' unilateralism is an unprecedented challenge to global trade.

China's Ministry of Commerce spokesman Gao Feng also said foreign and domestic firms are treated equally and that foreign firms should not have concerns about investing in China.

The comments come amid more pressure on Beijing from Washington over trade and pledges by China to further open its markets to foreign investors.

"Some countries' unilateral actions and calls for unilateralism are an unprecedented challenge to the multilateral trading system," Mr Gao said.

The administration of US President Donald Trump has begun to launch trade investigations under statutes seldom used in the World Trade Organisation era, including a "Section 301" probe of China's intellectual property practices.

On Monday, US trade envoy Robert Lighthizer said China is a threat to the world trading system.

"The sheer scale of their coordinated efforts to develop their economy, to subsidise, to create national champions, to force technology transfer and to distort markets in China and throughout the world is a threat to the world trading system that is unprecedented," he said, according to a transcript on the Centre for Strategic and International Studies website.

Mr Gao defended China's foreign investment policies, saying it has no laws requiring foreign companies to transfer technology to Chinese firms.

"(Any technology transfer) is market-driven behaviour between companies; there is absolutely no government intervention," he said.

The commerce ministry on Monday unveiled a crackdown, from last month until the end of this year, to protect the intellectual property rights of companies with foreign investors.

Mr Gao also said China hopes the European Union (EU) will maintain an open market and create a good environment for foreign firms.

China on Monday expressed concern about a proposal by European Commission chief Jean-Claude Juncker to limit its ability to buy up European companies in the infrastructure, hi-tech manufacturing and energy industries.

Mr Gao said: "China and the EU are both strong supporters of free trade, and we hope that with the current international trend, both sides can jointly oppose trade and investment protectionism and actively promote facilitation and liberalisation of global investment."- REUTERS

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