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Consistency can finally be a half-hearted head for Trump's commercial program. In Bob Woodward's book, Gary Cohn had been seen for the last time that he had seized President Trump's office of a letter terminating the Free Trade Agreement with Korea. South. specifically by the Chinese for what we invented and the Chinese just steal it and bring it down, the global economy, globalization does not work. "
Christopher Balding, a Western economist who has realized the evolution of China, was the first to notice (and applaud) elements of the US-Mexico trade agreement to exclude China from the North car market -American.
Larry Kudlow left the cat out of his bag this week when the presidential advisor said the tariff negotiations with China were short-lived.
Business leaders who are waiting for the trade dispute with China to end the usual situation of Mexican and Canadian disputes have every reason to wake up. It will not be over soon. When a tariff on Chinese production is announced, expect it to remain indefinitely. To date, the United States has imposed initial tariffs on about half of China's $ 250 billion worth of exports to the United States. More come.
US companies are beginning to feel public pressure to reduce their reliance on Chinese suppliers and markets. Vice President Mike Pence, in a speech this month, applauded the fact that the US did not name the market away from the Chinese market if it had to submit to the fight program. against the technological flight of Beijing, adding: "We must do the same."
Apple
does not care about Mr. Trump's requests for factories in the United States. Maybe it should not.
It's been a few weird weeks in this regard. Bloomberg News has published a detailed and detailed account of China's introduction of hidden components in US motherboards. All the American societies quoted in history have issued severe denials.
Then there is the strange case of
Broadcom
and its latest acquisition target in the United States, CA Technologies. In response to pressure from Trump, Broadcom has resumed operations in the United States but remains a Chinese-influenced company. CA's cumulative business model has made it the sole provider of legacy software used in US banks, hospitals and utilities. A letter from the Department of Defense criticizing the sale would be a fake. Yet, if the Trump administration wants to say what it says, the transaction is exactly the kind that might seem suspicious. Expect a revival of the long-gone multilateral export control co-ordination committee, which once put a hard hand on US and allied companies to limit technology trade flows to the American adversary during the last cold war.
But with one difference – the last time we had a debate. Arthur Vandenberg and all that.
Perhaps the time has come for the Trump government to show the American people how much it intends to upset the extremely important economic relationship between the United States and China.
According to one point of view, China becomes the worst enemy of its own development. He does not need our help. His social monitoring and control program will probably deter his best brains from staying in China or returning from a foreign university. The Soviet Union, in the 1980s, thought that with enough bureaucratic imperatives and enough flights, it could keep pace with the United States. She could not. Under Xi Jinping, China seems more and more confused about yield and value: more high-speed railroads nowhere, more imposing buildings without people inside.
A traditional vision of free trade would say that if China wants to drive out foreign investment, China pays the cost, not the United States. If China wants to tax its people to subsidize steel, solar panels and auto parts export, it would be wise to these documents to our consumers and businesses and focus our resources elsewhere. When your opponent insists on shooting himself in the foot, leave him. The eager pursuit of artificial intelligence by China worries Western experts, but it will likely be used primarily to destroy the creativity and initiative of its own people.
If the Trump boom proved anything, in the meantime, it is proven that American prosperity is still at home. A better response to China's evil ambitions would be to focus on renewing its own economic dynamism, building its military forces and alliances, managing the fiscal challenge of our welfare state. These priorities are likely to guarantee the success of the United States over the next century, without following Xi Jinping in the search for foreign scapegoats in case of failure and heavy intervention at home.
Tempted by the potential of technology to create a deeply modern, self-centered, totalitarian state, Xi quickly undermines the openness that has allowed China to break out of poverty. His personal ambition – not any political necessity – seems to be the driving force behind the show. It is a mistake that the United States does not need to emulate.
