Lost in last week's coverage of tariffs and trade deficits was the Trump administration's landmark decision to confront China's unfair and illegal practices that threaten our economic security.
It's the opening salvo of the key economic battle of the 21st century and part of a worldwide struggle the United States must lead. The Chinese government's strategy to amass control of critical technologies while undermining the rules-based trade system built by the United States and its partners will be hard to combat.
The Trump administration is now basing US policy on a recognition that the massive scale of China's technology transfer effort cannot be addressed with the usual levers of trade policy.
The administration plans new tariffs and will bring a case against China at the World Trade Organization regarding discriminatory licensing practices.
While the specific actions haven't been finalized, expect executive acts aimed at preventing Chinese state-controlled companies from swallowing up US technology firms, stopping US companies from handing over key technologies to China and working to persuade other Western countries to do the same.
For one, Chinese firms are increasingly connected to the Chinese government, serve the political objectives of the Chinese Communist Party and are the beneficiaries of massive subsidies and protectionist benefits given by Beijing.
In essence, China has politicized its entire economy.
https://nypost.com/2018/03/28/trump-is-right-we-have-to-counter-chinas-economic-warfare/
It's the opening salvo of the key economic battle of the 21st century and part of a worldwide struggle the United States must lead. The Chinese government's strategy to amass control of critical technologies while undermining the rules-based trade system built by the United States and its partners will be hard to combat.
The Trump administration is now basing US policy on a recognition that the massive scale of China's technology transfer effort cannot be addressed with the usual levers of trade policy.
The administration plans new tariffs and will bring a case against China at the World Trade Organization regarding discriminatory licensing practices.
While the specific actions haven't been finalized, expect executive acts aimed at preventing Chinese state-controlled companies from swallowing up US technology firms, stopping US companies from handing over key technologies to China and working to persuade other Western countries to do the same.
For one, Chinese firms are increasingly connected to the Chinese government, serve the political objectives of the Chinese Communist Party and are the beneficiaries of massive subsidies and protectionist benefits given by Beijing.
In essence, China has politicized its entire economy.
https://nypost.com/2018/03/28/trump-is-right-we-have-to-counter-chinas-economic-warfare/
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