China entered the World Trade Organization back in December 2001. When it first entered it was approximately 2% of world GDP and was given various protections regarding trade. Today it is close to 30% of world GDP and wants to maintain free trade, however; they still have not adjusted many tariffs that were put in place when it was a much smaller player. So why do countries accuse China of not being a fair trading partner?
This video from The Wall Street Journal, explains reasons as to why President Trump has China in his targets. President Trump and his administration believe China’s trade policy has cost the U.S. economy billions of dollars a year, as well as the loss of many technology secrets. China’s laws force U.S. companies to transfer their technology into the country and force them to partner with Chinese companies. This gives China direct access to intellectual property that U.S. companies have spent millions of dollars developing. Even with all of this red tape, many companies have reluctantly accepted these terms in order to obtain access to the second largest market in the world. China is now acknowledging these practices and is more open to talks to sort out these issues.