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WASHINGTON – To understand why the United States and China are on the brink of a trade war, consider the imminent death experience of American Superconductor Corp.
The company, known as AMSC and based in Mbadachusetts, a Chinese partner stole its technology – the electronic brains that power the wind turbines. The loss was devastating: the action of AMSC lost $ 1 billion and the company lost 700 jobs, more than half of its workforce
"Attempted corporate homicide", as called CEO Daniel McGahn. In January, his Chinese partner, Sinovel Wind Group, was convicted by a US court for stealing AMSC's trade secrets.
For the Trump administration, Sinovel's predatory practices are barely isolated. Beijing, it is accused, is orchestrating a campaign of struggles to supplant the American technological domination and, over the coming decades, will make Chinese companies world leaders in areas such as robotics and electric vehicles.
Trade Representative, Beijing's tactics include the restraint of US companies to hand over trade secrets in exchange for access to the Chinese market; force US companies to allow technology in China under adverse conditions; use public funds to buy American technology; and sometimes outright theft.
Critics have long claimed that China runs on intellectual property rights. But President Donald Trump, a candidate for the reform of China's trade policy, is the first US leader to risk a trade war between the two largest economies in the world. commercial warfare for a long time, but we did not participate, "said Richard Ellings, president of the National Bureau of Asian Research." We woke up … It's a fundamental change, it's a moment
Critics say, however, that while Trump chose the right fight, he chose the wrong weapon, predicting that China will challenge a series of US tariffs that will come into effect on Friday and immediately retaliate. they warn that the escalation of the trade war will slow world growth and endanger the second-longest economic expansion in US history.
Many badysts say the United States should have allies key as Japan and the European Union.China's trade policies – to impose unified pressure on Beijing.Instead, the United States engage in trade disputes with their friends on steel, aluminum and automobile imported.
"It is impossible to significantly influence Chinese IP behavior without co-ordination." Daniel Rosen, Rhodium Group Economic Studies
Unless there is a breakthrough in last minute, the Trump administration will impose this week a $ 34 billion tariff on Chinese products that have benefited from China's strong policies.] Once Beijing has reacted with retaliatory tariffs, as it he said, the fighting could escalate. "Trump said he was ready to hit taxes on Chinese imports up to $ 450 billion, or nearly 90% of the goods shipped by the China in the United States last year
Peter Navarro, the White House's trade advisor States must protect their high-tech "crown jewels" against predicted Chinese practices
The stakes go beyond the economy. Many of today's advanced technologies – the ability to collect and badyze large amounts of data, for example – have military uses.
"Today, the acquisition of a Silicon Valley start-up or even a health care provider The Assistant Secretary to the US Treasury, Heath Tarbert, has declared in Congress in April
That is why the United States blocked in January the acquisition of money transfer service MoneyGram by the Chinese company Ant Financial. . Concerns have been raised that the agreement would give China access to the financial records of millions of Americans, including members of the military.
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The headlines of JournalStar.com. The US states that the Chinese government blurs the borders between public and private companies by funding transactions such as the purchase of Volvo Cars by Geely in 2010 and the acquisition of German robot manufacturer Kuka by the Media appliance manufacturer Media in 2016.
In 2017, Trump vetoed the sale of a US semiconductor manufacturer to a Chinese investor as a threat to national security after Washington concluded that the funding came from the Chinese government.
Officials see a threat in Beijing's long-term development plan, called Made in China 2025. The plan calls for the creation of powerful Chinese players in areas such as information technology, robotics , aerospace, electric vehicles and biopharmaceuticals. Foreign business groups claim that Made in China 2025 injects them unfairly into these industries.
Whatever the reasons, China has gained momentum. Stephen Ezell, director of global innovation policy think tank on technology and innovation, said that China had increased its share of global production in 18 high-tech manufacturing industries by 8% in 2003 to 27% today. Tim Tangredi, CEO of Dais Analytic in Odessa, Florida, supports Trump's aggressive maneuvers, comparing the US tariff threat to America's "shock and terror" military campaign against Iraq. 2003.
About four years ago, Dais set up a Chinese company to help develop its nanotechnology business that helps produce clean water. But the partnership has imploded. Tangredi said the Chinese company had persuaded a long-time employee of Dais to make mistakes with trade secrets.
"They just stole it, and they use it against us," he said. the trade war will force China to rethink its practices: "You must do something to get their attention."
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