The United States continues to pressure China, and U.S. businesses could suffer as a result.
The White House maintains taxes on their imports, and the Chinese may try to stifle U.S. business deals in response.
The art of the deal
China can strike down mergers of non-Chinese companies because of strict anti-monopoly laws. Government officials scrutinize all deals made in China. They examine how a deal affects Chinese citizens and the impact it would have on the economy in general.
If they feel that a business deal isn’t beneficial to their country, they have no problem blocking it. This means approval takes longer in China, and foreign businesses face added scrutiny.
Fighting off tariffs
With the impact of tariffs, American businesses could face new obstacles in China.
The New York Times suggests that China could influence major business deals as a way to strike back at U.S. tariffs. China does not import enough from the United States to match tariffs. By nixing major business deals, they could have a significant impact on the U.S. economy.
If deals begin to fall apart, companies could pressure the U.S. government to drop trade taxes.
A situation worth watching
Even if China does not choose to pressure U.S. companies, the tariff situation is worth keeping an eye on. As a major economy, China has lots of ways to retaliate for the continued taxation of imports. Even if the country chooses not to retaliate, the impact of the tax on materials from China could have a significant effect on a wide array of industries.
Business dealings between the U.S. and China are seldom simple, and the tariff standoff is just another example of how complicated things can get. If you’re considering doing business within Chinese and American markets, a skilled business attorney can offer advice.