U.S. entrepreneurs are concerned with the demand that China cut industrial subsidies as a condition for a trade deal after the severe resistance from Beijing, according to two sources of interviews on discussions, which marks a retreat on a major US goal for business talks. The two largest economies of the world are nine months in a trade war worth billions of dollars, roiled financial markets and upended supply chains.
U.S. President Donald Trump's administration slapped the tariffs at $ 250 billion in importing Chinese commodities to press the requirements for termination of policies – including industrial subsidies ̵
The issue of industrial subsidies is difficult because they are in line with the policy of the Chinese government industry.
Beijing granted subsidies and tax breaks to state-owned companies and sectors seen as strategic for long-term growth. Chinese President Jin Jinping stressed the state's role in economic components.
By pushing to secure a deal next month or so, US firms have been resigned for getting less than they want to disburse subsidies and
This includes the end of forced transfer of technology, improving intellectual property protection and expanding access to China's markets, sources said. China has already mentioned those issues.
"No longer there will be some language here, but it will not be detailed or specific," a source familiar with statements said in reference to
A White House representative referred Reuters to the Office Representative of US Trade Representative, who does not respond to a request for comment.
"If US negotiators refer to success as changing the way China's economy operates," A deal that makes Xi look weak is not a lucrative deal for Xi. Whatever the deal we get, it will be better than what we have
China pledged earlier this year to end the subsidy on the market's removal for its domestic industries but without details on how to achieve that goal, three people who are familiar with trade t alks said Reuters in February.