Friday, May 17, 2019

This is Truly a Trade War

May 17, 2019 By William R. Hawkins

The trade negotiations between the Trump administration and the People's Republic of China (PRC) are not rooted in commercial disputes. Though media discussions are dominated by issues about opening markets for U.S. exports limited by Chinese policy, the real issue is national security and the need to keep the balance of power tilted in America's favor.

Business is the means, not the end. Comparative national capabilities in industry and technology determine military potential, and financial strength supports economic development and diplomatic influence. China's rapid growth has moved the country from the seventh largest GDP in 1980 to the second largest today with the world's largest manufacturing capacity.

Beijing's rise threatens to overturn world politics in the same way Germany did when it overtook Great Britain at the end of the 19th century. It was only because the U.S. economy surpassed the industrial might of Germany that the world wars turned out as they did...........

The tariffs imposed by President Donald Trump are justified by the U.S. Trade Representative's (USTR) "findings of its exhaustive Section 301 investigation that found China’s acts, policies and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden U.S. commerce." Chinese regulations force joint ventures which give majority control to Chinese "partners" of American firms. PRC policy also mandates technology transfers, facilitate "the systematic investment in, and acquisition of, U.S. companies and assets to generate large-scale technology transfer... [and] support cyber intrusions into U.S. commercial computer networks." Beijing's claim it is "opening up" means feasting on the fruits of American innovation................Read more


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