Eagle Forum Legislative Alerts

Tuesday, November 10, 2015

Not-So-Free Trade With China

The slogan “free trade,” which is so glibly and repeatedly echoed by businessmen and politicians, is a joke in China. China has become increasingly and profoundly protectionist, which means China protects its own industries at the expense of every other country. China passed a national security law mandating that all information systems operating in China be “secure and controllable,” and that all businesses operating in China, both Chinese and American, must sign a pledge that uses those exact words. It is not quite clear what that phrase means, but we believe it means Americans must provide backdoor software to allow Chinese government monitoring of all U.S. processes.

When U.S. firms buy or build manufacturing plants in China, China requires them to share their intellectual property and manufacturing know-how with Chinese state-owned enterprises, thereby enabling China to eventually design and build its own plants to take the business away from U.S. companies. That’s a clear violation of the rules of the World Trade Organization, but the U.S. does nothing to stop it. Cisco’s CEO sheepishly admitted that the practice of transferring technology is just part of doing business in China.

Meanwhile, China is starting to show off its new military power. Two Chinese jet fighters buzzed a U.S. plane within only 500 feet in the sky. And China did this just days before China’s President was to be received by Obama at the White House. And China is building and fortifying several islands in the South China Sea to serve as its “unsinkable aircraft carriers.”

Listen to the radio commentary here:

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