China to Boost Cooperation with Foreign Owned Businesses
President Xi Jinping made a statement on Thursday, May 12 that China would facilitate business collaborations with wholly foreign owned enterprises (WFOE) and organizations. The statement was made amidst unrelenting business tensions between the US and China. Tensions primarily causes by a new Chinese law requiring foreign private companies to be “governed” by the Chinese government which caused a backlash from the business sector.
Xi was quoted saying, “China will facilitate exchanges and cooperation for foreign companies, organizations and personnel,”
“China-U.S. economic and trade cooperation is an important part of bilateral relations. The two countries’ economies are complementary and there is great potential and wide prospects for trade cooperation.”
The latest example being Disney’s $5.5 billion Shanghai resort, a joint venture between the U.S. Company and the Chinese Shanghai Shendi Group. The park is set to open on June 16th of this year.
The U.S.’s trade deficit with China has long been an issue for the white house. The upcoming election has Presidential candidate Donald Trump addressing the issue as an”economic war” on the United States. In 2015, a $366 billion dollar trade deficit with China was registered, up from previous years and marking the largest U.S. foreign imbalance.