Should China Be Given Permanent Economic Sanctions?

There are some solid issues that need to be resolved regarding China trade policy. It is unfortunate that a trade war was needed to get the attention of the Chinese Dictator for Life.

There are short, middle and long range repercussions for failing to solve unfair trade practices and bring them to an honest and balanced footing. A Business Insider article said there were three primary issues of the trade war; intellectual-property rules, government subsidies, and enforcement mechanisms.

One cannot just ignore the corruption of China’s communist party permisiveness for disregarding patents, copyrights and so forth with lax enforcement or support for illicit use of proprietary material. There is a great information transfer going on from the west to China. That is all good for China and not so good for western producers of proprietary material. If that situation continues it is a reason to stop doing business with China and instead work with just Taiwan and Vietnam.

American businesses that want to produce in China are required to have a majority Chinese partner and open all technology accounts to the Chinese. It is a forced technology transfer in effect. That Communist redistribution rule is the cost of doing business in a Communist ruled nation. If China cannot bring itself to respect property rights of intellectual products the Trump administration might need to simply ban doing business with China eventually.

China also has government subsidies for business and that is unfair for western corporations. Honestly though, that is what communist or socialist governments do so it seems irrational to expect something else. American businesses want the cheap Chinese production costs and access to the large and growing Chinese consumer market for sales. President Trump has noticed that China isn’t willing to budge on just doing business western-style without government support for business (although America offers subsidies to businesses with (for example) the oil depletion tax allowances that are perhaps a form of back-door subsidy. A proper Confucian rectification of business would eliminate both Chinese government business subsidies and the oil depletion tax allowance.





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