Chinese President Xi Jinping and US President Donald Trump.
Jim Watson | AFP | Getty Images
It is up to US President Donald Trump to end the stalemate in the trade war and reach an agreement with China, said Wang Huyao, an advisor to the Beijing government.
China has already made "every effort" – including the adoption of a new foreign investment law in March – to address some of the concerns that the foreign business community has raised, said Wang, founder and president of the Beijing-based think tank, Center. on China and globalization.
The new law bans the forced transfer of technology from foreign-invested enterprises in China and strengthens intellectual property protection, Wang told CNBC's Squawk Box on Tuesday. He said it also gives overseas companies a level playing field with local players ̵
"It is unrealistic to change the whole set of laws in China – no state can do it, but we have actually passed a new law," he said. "So, I think there is still reason to work there to deal with all the concerns the US may have."
But some analysts said the new law – should be implemented in January next year – does not go far enough and may not be enough to reassure Washington.
Just two months after the law was passed, Trump accused China of backing some of the commitments made in previous negotiations.
The President stated that Beijing "broke the deal." Washington subsequently raised tariffs on Chinese goods, and later US Treasury Secretary Steven Mnuchin revealed that the deal was "about 90% of the way there" to be finalized.
Since then, the trade war has escalated again, with both parties giving up punitive tariffs on each other's goods this month – with additional charges expected in the coming months. This has prompted several experts to lower their expectations that the two largest economies in the world could reach an agreement before the 2020 US presidential election.
Wang said there was now "some fatigue" about the way Trump " again and again 'raises tariffs on Chinese goods, making it' inconvenient 'for both parties. But Beijing has always maintained that it is ready to speak, he added, so that "it is up to the United States to really be forward and be flexible and not to take a really harsh attitude"
"We cannot have a perfect deal, said Wang. "You can see that China continues to open not because of the US and interest, but because of China itself."
"I think for the US they need to see the progress that China is making, and then probably work on this impulse to push China to be more open instead of putting China in a difficult position."
experts said the US raised some valid points about China and its business practices. However, they argued that the way the Trump administration is addressing these issues – for example, by airing its criticisms in public and returning China to a corner – may not be effective.
– Evelyn Cheng of CNBC contributed to this report.