Home / Others / AP explains: the objectives of EE. UU They are the heart of China’s economic plan

AP explains: the objectives of EE. UU They are the heart of China’s economic plan

BEIJING (AP) – President Donald Trump's threat of raising tariffs on technology imports hits the heart of Beijing's plan for prosperity and restores the greatness of the nation.

For four decades, China has relied on foreign companies to deliver technology – or help potential Chinese rivals develop their own – in exchange for market access. That helped turn China into a leader in the fields of mobile phones, high-speed rail and wind turbines, but it also fueled complaints that China was unduly benefiting from those tactics.

Chinese officials say they are willing to negotiate. In a speech delivered at a business conference in southern China on Tuesday, President Xi Jinping promised progress in areas that are priorities for the United States, such as cutting tariffs on car imports, opening China's banking industry and increasing the total volume of imports, promises that some analysts at the end of the biggest global trade dispute since the Second World War.

But the political importance of the industrial policy that Washington wants to change in Beijing suggests that Trump will face intense resistance to major changes.

WHAT IS CHINA'S GAME?

China's tactics have long frustrated the United States, Europe, Japan and other trading partners. But they avoided an open confrontation because China was also a growing market for power generation, telecommunications, aerospace and other technologies.

The feeling against Beijing increased after complaints from foreign companies that are being excluded from promising industries as China develops its own suppliers.

"For them, it's a success story, to change that to something else, I do not know how the system would be willing to do it, because it's so successful," said Joerg Wuttke, a former president. from the Chamber of Commerce of the European Union in China, who has worked in this country for three decades.

"There will be attempts to appease the United States, but it will not work," said Wuttke. "We are entering a new phase of uncertainty."

WHAT DO FUSS PRETEND?

Other governments, not just the US UU., They say that China's tactics violate the spirit of free trade. Many complaints focus on investment or regulation issues that are not part of their commitments to the World Trade Organization.

A Japanese Shinkansen bullet train builder, Kawasaki Heavy Industries, complained that after railway technology was authorized in China, local manufacturers tried to sell it overseas.

Beijing pressured automakers to switch to using suppliers of Chinese components by imposing import taxes on cars assembled in local factories with parts manufactured abroad. At the time a WTO panel ruled in 2008 that it violated China's market opening promises, automakers had switched to local suppliers and were teaching them how to make better parts.

USA UU The authorities also accuse the Chinese government of using or encouraging computer hacking and stealing technology and trade secrets. More recently, Western governments are on the verge of Chinese purchases of semiconductors, robotics and other companies, while foreign buyers can not acquire the majority assets in China. In Europe, that generated complaints that the continent could lose its competitive advantage.

Earlier, Washington filed a complaint from the World Trade Organization in which it accused Beijing of imposing unfair contractual terms on foreign suppliers and allowing its companies to continue using their technology once the license expires.

In September, Trump blocked the purchase in China of a US semiconductor manufacturer in September. The same month, the president of the governing body of the European Union announced plans for the first "investment selection" system of the 28-nation trade bloc.

WHAT IS THE UNITED STATES STRATEGY?

Trump's salvo was the approval of possible tariffs of 25 percent on $ 50 billion of aerospace, computer and other technology in China. The Office of the US Trade Representative UU He said that was in response to Chinese policies that "force US companies to transfer their technology" to Chinese companies. He said that the products chosen by the tariffs were those that benefited from such tactics.

Beijing returned fire with its own list of $ 50 billion American products, including pork and steel pipes for a tax increase. Trump increased the pressure by announcing that he could request higher import taxes on an additional $ 100 billion of Chinese products.

The Trump administration could launch a similar investigation into Chinese cloud, financial and value-added telecommunications services, researchers at consulting firm Eurasia Group said in a report

"We remain concerned that the process of The imposition of tariffs could be dangerously out of control, given that this commercial action is really less about trade and more about China's rise as a technology leader, "the researchers said. 19659027] WHAT ARE THE POSSIBILITIES OF COMMITMENT?

Chinese leaders launched a market reform in the 1980s, but they never abandoned the idea that the ruling Communist Party would guide development and state enterprises would dominate the economy.

Even today, China is the most closed main economy. Foreign or private competitors have little or no access to industries such as banking, oil and gas, telecommunications, airlines, coal mining, steel and railways. Foreign car manufacturers and other companies must work through state partners, share technology and develop their skills.

Leaders declared in 2013 that market forces would prevail in decision-making, but they countered that by saying that state industries would still dominate and the party would intensify control of state-owned enterprises.

"One of the difficulties is that the commitments have to come mainly from the Chinese side," said Lester Ross, a lawyer in Beijing for WilmerHale and president of the United States House. Trade in the policy committee of China.

"I do not think the Chinese leadership likes to see itself in that position," he said. "She sees herself as a rising power, a rejuvenated country with great ambitions to ascend to the top of the world, and she sees no real obligation to make concessions unless they are absolutely in her own interest."


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