Business in China

Sometimes a little is a lot. Under the current trade agreement with China a company can avoid their high import taxes by setting up business in China but there is a caveat. The company can only own 49% of the stock. Trump wants to change that to 51%. The reason is that when the Chinese government is the majority stockholder they can have access to all of the technical knowledge as well as research and development work. China is already a major thief of intellectual property and this just makes it easier for them. So while the 2% change in ownership may seem small it involves big changes.