The White House announced that new restrictions will be placed on China and its foreign business practices. Those areas of concern are in large part outside the domain of the World trade Organization, of which China is a member. Trading practices of the 2nd largest economy in the world have been a source of conflict and concern for years, ever since they were admitted in 2001.
What to do? What to do, has always been the question.
First, trade negotiators will look at theft of intellectual property, a tried and true Chinese government practice through its state-owned companies. Why buy a product if you can build your own version at home? China has become expert in luring American owned businesses into partnerships that require the surrender of methods and techniques that come under the heading of intellectual property. Soon, the partnerships are dissolved and the Americans are sent packing and now they face competition from China that produces its own version of the same product or service. Not fair, and not covered adequately in the WTO Agreement(s).
Second, flooding the markets with products that are sold below cost, subsidized by Beijing to put competitors out of business, thereby eliminating those very same competitors. An old tactic, long recognized for its anti-trade results.
more later
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