US caves in on demands for China to reduce state industrial subsidies
Reuters report the US has back pedalled on demands from China.
U.S. negotiators have tempered demands that China curb industrial subsidies as a condition for a trade deal after strong resistance from Beijing
Reuters citing two sources briefed on discussions
This is a retreat on a core US objective for the trade talks. The issue of industrial subsidies is thorny because they are intertwined with the Chinese government's industrial policy. Beijing grants subsidies and tax breaks to state-owned firms and to sectors seen as strategic for long-term development.
In the push to secure a deal in the next month or so, U.S. negotiators have become resigned to securing less than they would like on curbing those subsidies and are focused instead on other areas where they consider demands are more achievable, the sources said.
- include ending forced technology transfers
- improving intellectual property protection
- widening access to China's markets