Beijing Warns US Executives on Tariffs Amid Tightened Regulations

Chinese officials warned visiting US executives that higher tariffs on imports from China could harm their businesses. The warning follows a meeting where new policies aimed at improving the business environment for foreign investors were endorsed, along with tighter regulations on state secrets. Both countries have cited national security concerns.

Chinese officials warned a delegation of top US executives visiting Beijing this week that higher tariffs on imports from China will harm their businesses inside the country.

The delegation, part of the US China Business Council and including CEOs from companies like FedEx and Micron, followed a top-level meeting where ruling Communist Party leaders endorsed policies to improve the business environment for foreign investors. However, they also vowed greater vigilance in protecting state secrets, creating a potential minefield for foreign businesses under intense scrutiny.

The US and China have cited national security concerns in imposing trade and investment restrictions, with American businesses often caught in between. Recent years have seen Washington hiking tariffs on Chinese products and limiting Chinese access to advanced technologies. The Biden administration seeks better ties but maintains sanctions imposed during the Trump era. A proposed rule from the Treasury Department aims to restrict US investments in China's AI, computer chips, and quantum computing sectors.

(With inputs from agencies.)