Eagle Forum Legislative Alerts

Wednesday, June 08, 2011

Trade With China Cheats U.S. Workers

Some U.S. corporations are now complaining that they are getting badly cheated by so-called "free trade" with China. The American Chamber of Commerce in China is now complaining that China is violating free-trade pledges by limiting market access and shielding its industries from U.S. competition. The Chinese government is subsidizing local Chinese businesses in technology, energy, aviation and other fields in order to establish Chinese dominance in those fields.

The U.S. Chamber of Commerce says those policies are "a blueprint for technology theft" and force non-Chinese firms to hand over their ideas, patents, trade secrets, and know-how as the price of doing business in China. The U.S. Chamber of Commerce pointed out that 26% of its member companies say they are being hurt by China's so-called "indigenous innovation" policies. That's the policy that requires U.S. companies to give China all its patents and manufacturing processes in order to be allowed to do business in China.

The American Chamber of Commerce in China's annual White Paper reported that China clearly supports domestic companies at the expense of non-Chinese companies by regulations on "licensing, standards, and government procurement." These regs, combined with forbidding non-Chinese access to major industries, show that China, despite World Trade Organization membership, has no intention of allowing free and open markets.

Last December, U.S. trade negotiators thought they were getting a promise that Chinese local governments would not be required to buy locally developed technology products and that China would stop using stolen software. There is no evidence that China complied; U.S. negotiators had failed again. Why is anybody surprised? China has a Communist government and is aggressively protectionist. Trade with China is a big cheat on America.

Listen to the radio commentary here:

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