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US business groups praise Trump's trade war truce, but want an 'enforceable agreement' with China

Key Points
  • The U.S. Chamber of Commerce said it wants an "enforceable agreement" in which Beijing commits to opening its markets and increasing protection for intellectual property. 
  • The Semiconductor Industry Association -- which represents chip companies like Broadcom, Qualcomm and Intel among others -- said they want additional details on Trump's comments regarding Huawei.
  • The Business Roundtable, which represents American CEOs, urged "both parties to conclude an agreement that addresses structural issues in China and removes tariffs." 
Workers load goods for export onto a crane at a port in Lianyungang, Jiangsu province, China June 7, 2019.
Reuters

U.S. business groups praised President Donald Trump's decision to restart trade talks with China, but also made clear they expect further details from the White House and want lasting change to "unfair trade practices" by Beijing.

The U.S. Chamber of Commerce said it wants an "enforceable agreement" in which Beijing commits to opening its markets and to increasing protection for intellectual property.

"We hope each side is now prepared to go the last mile to achieve a high-standard, comprehensive, enforceable agreement," said Myron Brilliant, the Chamber's executive vice president and head of international affairs.

"China must commit to addressing longstanding unfair trade practices and industrial policies that prevent a level-playing field for U.S. companies," Brilliant said.

The Business Roundtable, which represents American CEOs, urged "both parties to conclude an agreement that addresses structural issues in China and removes tariffs."

The National Association of Manufacturers said it seeks a "new structure for the U.S.-China commercial relationship."

"For too long, manufacturers have paid the price while China has reaped the rewards of its unfair trade practices, intellectual property theft and exploitation of existing trade agreements," President and CEO Jay Timmons said. 

The Semiconductor Industry Association -- which advocates for chip companies like Broadcom, Qualcomm and Intel among others -- said they want additional details on Trump's comments regarding Huawei.

Trump said Saturday he would let Huawei buy American products so long as it does not pose a national security threat, seeming to reverse a sales ban on the Chinese tech giant.

And the Information Technology Industry Council, which represents tech giants like Google and Microsoft, praised what it called the "pragmatic and direct discussions" between Trump and Xi.

"We are also relieved that President Trump has reconsidered his threat to impose additional tariffs, which would have accelerated harm to all American consumers, workers, and businesses of all sizes," said Jason Oxman, the group's president and CEO.

U.S. Chamber of Commerce:

The U.S. Chamber of Commerce is encouraged by today's announcement by Presidents Donald Trump and Xi Jinping that both governments will return to the negotiating table and refrain from further escalatory actions, including new tariffs that would damage businesses, workers, consumers and the global economy.

We hope each side is now prepared to go the last mile to achieve a high-standard, comprehensive, enforceable agreement. China must commit to addressing longstanding unfair trade practices and industrial policies that prevent a level-playing field for U.S. companies. Opening markets, increasing IPR protection, and promoting fair and reciprocal opportunities in trade are in China's own interest as it works to build a stronger and more innovative economy. If China makes the necessary commitments, the administration should take the necessary steps to lift tariffs that are harming U.S. manufacturers, farmers and consumers.

National Association of Manufacturers:

A trade deal, not a trade war, is exactly what manufacturers have advocated over the last year and a half, and today's meeting brings us closer to that goal. We will continue to seek a new structure for the U.S.–China commercial relationship that eliminates unfair practices and opens China's market through strong enforceable new trade rules. Manufacturers are encouraged that the two countries will refrain from escalating tariffs further to allow for new rounds of negotiation.

Manufacturers need certainty now. For too long, manufacturers have paid the price while China has reaped the rewards of its unfair trade practices, intellectual property theft and exploitation of existing trade agreements. The effects or tariffs and retaliatory tariffs are further weighing on our confidence and our ability to hire and grow. With a more level playing field, we will be better equipped to reach our full potential.

A bilateral, enforceable trade agreement would be history-making and game-changing for America's manufacturing workers. As the first business association to call for such an agreement, the NAM will continue to work with the administration to ensure manufacturers' priorities are top of mind as U.S.–China talks continue. "

The NAM first called for the administration to pursue a bilateral trade agreement with China in a letter from Timmons to President Trump in January 2018. The NAM has released a full negotiating objectives framework for an agreement that will address China's unfair trade practices and level the playing field for manufacturers in the United States.

Semiconductor Industry Association:

The progress made today by President Trump and President Xi in Osaka is good news for the semiconductor industry, the overall tech sector, and the world's two largest economies. We are encouraged the talks are restarting and additional tariffs are on hold and we look forward to getting more detail on the president's remarks on Huawei

Business Roundtable:

Business Roundtable is encouraged that President Trump and President Xi agreed to resume trade negotiations and suspend any further tariff escalation. We continue to support the Administration's efforts to address long-standing unfair trade practices and urge both parties to conclude an agreement that addresses structural issues in China and removes tariffs. The CEO members of Business Roundtable will continue to assist in achieving a successful outcome

Information Technology Industry Council (ITI):

We are encouraged that China and the United States have agreed to continue negotiations without further escalation of the mutually damaging trade war. We are also relieved that President Trump has reconsidered his threat to impose additional tariffs, which would have accelerated harm to all American consumers, workers, and businesses of all sizes.

Given the size and influence of both the U.S. and Chinese economies, we must address and resolve our differences in the interest of the global economy. This weekend's pragmatic and direct discussion between the two leaders is a step in the right direction towards stabilizing the bilateral relationship. The tech industry recognizes that the U.S. and Chinese negotiating teams are working hard, and we urge both sides to continue to confer in good faith and conclude a deal that addresses longstanding tech trade issues and moves towards a more open and reciprocal U.S.-China economic relationship.