China's Internet regulating system is a "trade barrier," claims the USTR. (Photo : Getty Images)
The United States is pressing China to ease trade barriers for companies abroad, with senior U.S. officials claiming that the regulatory environment had become more complex in the Asian country.
In a report from Reuters, several top U.S. officials called onto China to make it easier for foreign companies to do business in their country to maintain joint prosperity.
Washington had previously deemed Beijing's sterner Internet regulations as a trade barrier, per the 2016 National Trade Estimate (NTE) Report from the U.S. Trade Representative (USTR).
Trade Barriers
This year's NTE listed down China's new Internet rule as a trade barrier for businesses from abroad.
"China continued to pursue industrial policies in 2015 that seek to limit market access for imported goods, foreign manufacturers and foreign service suppliers, while offering substantial government guidance, resources, and regulatory support to Chinese industries," NTE's overview to China's industrial policies stated.
Furthermore, the NTE report said that China had a habit of "outright blocking of websites," which have worsened in the past year.
"Over the past decade, China's filtering of cross-border Internet traffic has posed a significant burden to foreign suppliers, hurting both Internet sites themselves and users who often depend on them for their business," the report added.
According to Foreign Policy, the U.S.'s act of labeling China's Internet rules, including its infamous "Great Firewall," as a trade barrier is a good move considering that foreign governments have so little means of influencing domestic human rights practices in the mainland.
Recent Call
During a two-day high-level talk between China and the U.S., American Treasury Secretary Jack Lew expressed his opinion on the growing discontent at how Beijing manages foreign investors and businesses.
"Concerns about the business climate have grown in recent years, with foreign businesses confronting a more complex regulatory environment and questioning whether they are welcome in China," he said.
According to Lew, both China and the U.S. have similar responsibilities in facilitating investment and trade within their jurisdictions, which means they should both enact policies that "encourage healthy competition."
"These policies are vital as China seeks to build on its economic progress in recent decades," he added.
Meanwhile, State Secretary John Kerry called for China's share on the intertwined prosperity of two of the world's biggest economies.
He also noted the disturbing effects of China's new law regulating non-governmental organizations, which was passed in April amid high criticism from the international community.
However, Kerry said that while President Xi Jinping assured that the laws would "be applied in any way whatsoever that affects the ability to open up and to do business," the rest of the world should "show patience" to see how it all turns out.
