Tornado Alley (PROG)

[fuagf]

conix, Re Lighthizer's "so-called Section 301" report. Again for you. Excerpts.

But don’t be fooled. The report is wide of the mark in several key areas.

First, it accuses China of “forced technology transfer”, arguing that US companies must turn over the blueprints of proprietary technologies and operating systems in order to do business in China. This transfer is alleged to take place within the structure of joint-venture arrangements – partnerships with domestic counterparts which China and other countries have long established as models for the growth and expansion of new businesses.

Significantly, US and other multinational corporations willingly enter these legally negotiated arrangements for commercially sound reasons – not only to establish a toehold in China’s rapidly growing domestic markets, but also as a means to improve operating efficiency with a low-cost offshore Chinese platform. Portraying US companies as innocent victims of Chinese pressure is certainly at odds with my own experience as an active participant in Morgan Stanley’s joint venture with the China Construction Bank .. http://www.scmp.com/topics/china-construction-bank ..
(and a few small minority investors) to establish China International Capital Corporation in 1995.

[... Secondly ...]

And, of course, it was US president Dwight Eisenhower who in 1961 drew attention to America’s powerful military-industrial complex as the linchpin of state-sponsored, taxpayer-funded innovation in the US. Nasa-related spin-offs, the internet .. http://www.scmp.com/topics/internet , GPS, breakthroughs in semiconductors, nuclear power, imaging technology, pharmaceutical .. http://www.scmp.com/topics/pharmaceuticals .. innovations and more: all are important and highly visible manifestations of industrial policy the American way. The US does it though its federal defence .. http://www.scmp.com/topics/defence .. budget – where outlays of close to US$700 billion this year are more than the combined total earmarked for defence in China, Russia .. http://www.scmp.com/topics/russia , the UK .. http://www.scmp.com/topics/britain , India .. http://www.scmp.com/topics/india .. , France .. http://www.scmp.com/topics/france , Japan, Saudi Arabia .. http://www.scmp.com/topics/saudi-arabia ..
and Germany.

Yes, the US trade representative is entirely correct in underscoring the role that innovation plays in shaping any country’s future. But to claim that China alone relies on industrial policy as a means towards this end is the height of hypocrisy.

[... Thirdly ...]

Cyberespionage .. http://www.scmp.com/news/china/article/2141525/us-official-accuses-china-industrial-cyber-spying-amid-looming-trade-war .. is the third leg of the stool in the US case against China. In this area, there can be no mistaking the evidence underscoring the role played by China’s People’s Liberation Army .. http://www.scmp.com/topics/china-military .. as a major actor in cyberintrusions directed at US commercial interests. These problems were, in fact, so serious that former president Barack Obama .. http://www.scmp.com/topics/barack-obama .. presented top-secret evidence of state-sponsored computer hacking to President Xi Jinping .. http://www.scmp.com/topics/xi-jinping .. in September 2015. Since then, most reports point to a reduction in Chinese incursions. Unfortunately, the evidence cited in the US trade representative’s report in support of cyber-related trade violations largely predates that confrontation.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=148983345

There are now 4 replies to that Stephen Roach article which was linked to you at least twice before. Yesterday, here ..

conix, It wasn't. Kudlow's paraphrase "All the world leaders at that table know China has been dealing in unfair trading practices." Well, maybe also all those world leaders know,

... Why the US has a weak case against China’s ‘unfair’ trade practices
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=151988602

To your

"The trade war is necessary. ... Something tells me that if Obama stood up to China
and slapped tariffs on them, we would be seeing high fives in text form all over this board."

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