While it is critical for President Trump and US allies to eventually succeed in getting the Chinese to discontinue unfair practices like steal intellectual property it is also naïve to believe that doing so will be enough for the United States to win the race to be the global leader in the industries of the future.
China’s economic performance over the past 40 years has been nothing short of miraculous. In 1978, when Deng Xiao-ping became chairman of the Chinese Communist Party, or CCP, China’s GDP was about $150 billion in constant US dollars, according to the World Bank. Last year, 40 years after the transformation Deng initiated in China, its GDP in constant US dollars had soared to over $13 trillion dollars, a rate of growth of roughly 10% a year. In recent years, this growth rate has slowed to around 6%, but the overall rise of China’s economy has been simply astonishing.
...there are lingering questions about whether even smart authoritarian regimes can stay at the cutting edge of innovation while restricting the free flow of information, maintaining a rigidly hierarchical system and enforcing political orthodoxy within its universities. “Until and unless China relaxes its draconian political controls,” writes David Shambaugh, one of America’s leading experts on China, “it will never become an innovative society and a ‘knowledge economy.’”
The Department of Commerce has again extended the temporary general license allowing American companies to sell to Huawei, the embattled Chinese tech company. The existing temporary license was set to expire Monday. The announcement is good news for Huawei and for American tech companies who rely on it as a key customer. The Commerce Department also said the extension is largely designed to help the rural US wireless providers who use Huawei's inexpensive equipment in their networks.
China has paid more than 7,000 U.S. scientists and other experts over the past decade through its Thousand Talents Plan (TTP) to hand over their research, according to a Senate subcommittee report made public on Nov. 18. The TTP is only one of about 200 such Chinese “talent recruitment” programs. While being paid by China, these scientists have also received U.S. government funding.
As countries increasingly vie to both achieve the highest levels of innovation-based economic growth and attract, grow, and scale innovative enterprises and industries, a growing number have turned to “innovation mercantilist” policies that seek to grow nations’ innovation-based firms and industries through policies such as local production requirements, export subsidies, weak intellectual property (IP) protection, discrimination against foreign firms, economy-specific technical requirements, and data localization requirements.
In the global race for technology leadership, many countries are resorting to “innovation mercantilism” to create unfair advantages for their local industries at the expense of foreign competitors. According to the latest edition of ITIF’s “Global Mercantilist Index,” China is in a class by itself on that front. Given the damage these mercantilist practices do to global innovation, the United States and other free-trading, rule-of-law nations must take stronger steps to push back.
The United States should partially disengage with the Chinese regime to combat its predatory economic practices, according to a recent report by Washington-based think tank The National Bureau of Asian Research. The U.S. administration should pursue defensive measures to stem the flow of critical technologies to China, and work on reaching a ceasefire in the nearly 16-month-long trade war, says the report, which was released Nov. 4.
As trade talks between Washington and Beijing intensified earlier this year, suspected Chinese hackers broke into an industry group for U.S. manufacturers that has helped shape President Donald Trump’s trade policies, according to two people familiar with the matter.
China is exporting drones that it advertises as having lethal autonomy to the Middle East, Defense Secretary Mark Esper said Tuesday. It’s the first time that a senior Defense official has acknowledged that China is selling drones capable of taking life with little or no human oversight.