Apple-backed think tank calls for radical changes to Chinese economic policy
A Washington think tank -- with board members from Apple, Amazon, Google and other tech firms -- on Thursday called for an international coalition to pressure China into changing course on some of its economic policies.
"America cannot respond with either flaccid appeasement or economic nationalism; it must assemble an international coalition that pressures China to stop rigging markets and start competing on fair terms," the Information Technology & Innovation Foundation wrote, according to Reuters. The organization complained that three previous U.S. administrations had "failed" to engage Chinese officials, and that China is more resistant to pressure now since it's less economically dependent on the U.S.
ITIF called for the coalition to include Australia, Canada, Germany, Japan, South Korea, the U.K., the U.S., and the European Union. It also suggest that U.S. President Donald Trump should focus on trade issues with China, not Mexico, although it warned that the Chinese government could punish American firms in retaliation.
A focal point of criticism is believed to be the Chinese government's "Made in China 2025" program, which is intended to ramp up the number of domestically-made products across 10 different industries. One target includes growing the number of local parts used in tech to 70 percent, through a combination of measures like subsidies, standards, policies, and government-backed investment funds.
Another issue is control over data, since in June new laws will require "critical information infrastructure operators" to store personal and business data in China, as well as offer "technical support" to security agencies, and submit themselves to national security reviews.
Opposing the data laws is likely of special interest to Apple, since the company has adopted tough privacy stances elsewhere, and might have to build new infrastructure to comply. It has also dealt with online store closures and repeated censorship efforts.
To reach the lucrative Chinese market, though, Apple has appeased the government in some ways, for instance by keeping ads out of critical publications.
Parts may also be a relevant issue since while many of Apple's suppliers are already Chinese, others are based in places like Japan and South Korea -- some of those firms could be pushed out of the supply chain.
"America cannot respond with either flaccid appeasement or economic nationalism; it must assemble an international coalition that pressures China to stop rigging markets and start competing on fair terms," the Information Technology & Innovation Foundation wrote, according to Reuters. The organization complained that three previous U.S. administrations had "failed" to engage Chinese officials, and that China is more resistant to pressure now since it's less economically dependent on the U.S.
ITIF called for the coalition to include Australia, Canada, Germany, Japan, South Korea, the U.K., the U.S., and the European Union. It also suggest that U.S. President Donald Trump should focus on trade issues with China, not Mexico, although it warned that the Chinese government could punish American firms in retaliation.
A focal point of criticism is believed to be the Chinese government's "Made in China 2025" program, which is intended to ramp up the number of domestically-made products across 10 different industries. One target includes growing the number of local parts used in tech to 70 percent, through a combination of measures like subsidies, standards, policies, and government-backed investment funds.
Another issue is control over data, since in June new laws will require "critical information infrastructure operators" to store personal and business data in China, as well as offer "technical support" to security agencies, and submit themselves to national security reviews.
Opposing the data laws is likely of special interest to Apple, since the company has adopted tough privacy stances elsewhere, and might have to build new infrastructure to comply. It has also dealt with online store closures and repeated censorship efforts.
To reach the lucrative Chinese market, though, Apple has appeased the government in some ways, for instance by keeping ads out of critical publications.
Parts may also be a relevant issue since while many of Apple's suppliers are already Chinese, others are based in places like Japan and South Korea -- some of those firms could be pushed out of the supply chain.
Comments
When Foxconn-Apple finally has plants outside of China filled with robots and domestic (Indian?) workers, it will have more options for resisting Chinese meddling-sabotage than it does today. It would be terrible if (hypothetically) China banned new iPhone sales in that nation, but even worse if Chinese regulators impeded iPhone manufacturing at Chinese-based plants. That would block iPhone sales everywhere.
In the long run, a trade war with China may be the only way to get its leaders to moderate their views. No bully will stop bullying until circumstances force him to reconsider the error of his ways.
Think what you will about Trump, at least he has an initiative to bring manufacturing & intellectual property back to the US.
My biggest issue with China is how they steal IP from not only US companies but US government agencies and even the military while we are comfortable just sitting idly by. Furthermore, their market manipulation. Enough is enough.
The ironic thing about EPA regulation is that it moves manufacturing to another country (along with other factors like labor) with minimal pollution laws because the added cost is too much. In many cases, this helps our local environment but we ultimately just pollute the global environment more (look at Asia). I would argue if our companies at home must meet a certain environmental standard, so should the manufacturer in another country selling that product in the US. Any variation would result in an environmental tax which is a function of the variation of Federal US laws, with the revenues going to environmental clean up programs. Anything less is just to make us feel better about ourselves; just because we manufacture somewhere else doesn't mean we saved the environment.
There are gigantic multistory malls that sells fake products in Guangzhou, Shenzhen and across China in an uncountable number of fake products markets.
You just have to look at football (soccer), China has come from nowhere to being in a position to own or invest in many of Europe's top clubs and have recently started spending obscene amounts to bring the star players to the chinese league; Carlos Tevez (a guy well past his peak) for example gets paid £34.4million ($42.5million) per season to play in china.