Businesses are worried about the possible cancellation of a tax treaty between the U.S. and China as Treasury Secretary Scott Bessent gets ready for trade talks in Switzerland.

U.S. businesses operating in China could have a hard time collecting profits and will have to pay higher taxes if the treaty is done away with or scaled back, business groups argue.

“American companies could face arbitrary Chinese tax audits and investigations, higher tax burdens, and greater costs and complexities in repatriating profits,” U.S.-China Business Council president Sean Stein wrote to Bessent in a May 1 letter. “These effects would be felt across the board, potentially impacting nearly every American company that operates in China.”

In the letter, Stein requested a meeting with Treasury staff. A representative for the U.S.-China Business Council said Wednesday that........

© The Hill