With any kind of political tension comes the potential for delay in progression of the achievement of economic goals. At least, that could be the case for decision-making (and deals) between America and China. According to ABB CEO Ulrich Spiesshofer, with America and China’s recent threat to fresh import tariffs, a “quite unique” state of affairs has emerged. This, at a time when finally – for the first time in 10 years – there is “stability and growth across various markets.”
However, if a trade war occurs – or even if there is anticipation of one – things may change. As Spiesshofer said:
“So, I’m concerned, I would be concerned, if we get a lot of dampening effects and uncertainties. We need certainty, in terms of decision-making, we need certainty for investment climate, because altogether, I think the underlying demand is there on the consumer side.”
As such, the US has launched a complaint. In a statement to the World Trade Organization it said:
“China appears to be breaking WTO rules by denying foreign patent holders, including US companies, basic patent rights to stop a Chinese entity from using the technology after a licensing contract ends. “China also appears to be breaking WTO rules by imposing mandatory adverse contract terms that discriminate against and are less favourable for imported foreign technology.”
Meanwhile the Ministry of Commerce in China has committed to being “fully prepared to defend [its] legitimate interests [remaining] confident and capable of meeting any challenge.”
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