Tuesday, November 13, 2012

Congressional Report: Chinese government-controlled enterprises threaten U.S., world economy

China’s government-controlled enterprises are targeting the U.S. market and pose a threat to U.S. companies, free markets, and fair trade, according to a forthcoming report by a congressional Chinese commission.
“The Chinese system of state capitalism or ‘capitalism with Chinese characteristics’ has blocked many of the potential benefits of a free market, not only in China, but among China’s trading partners,” concluded a draft report by the U.S.-China Economic and Security Review Commission.
“The state-owned sector in China can undercut prices charged by privately held competitors globally due to a variety of subsidies granted by the Chinese government: low-interest-rate loans; below-market-rate land, fuel, and electricity; special exemptions from environmental and labor regulations; tax abatements and preferences.”
Some 28 states and U.S. cities opened economic development offices in China and at least eight state governors led trade and investment missions to China, the report said.
Chinese investment in the United States is growing and includes some money from Communist-controlled companies.
“Many of the industrial policy goals of China’s investment could harm segments of the most important U.S. industries,” said the draft report by the U.S.-China Economic and Security Review Commission.
“For example, China’s emphasis on obtaining technology could damage domestic and foreign sales of U.S. information and communications and aerospace industries.”

Read more: http://freebeacon.com/made-in-china/

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