Countering China's Trade and Investment Agenda

WM Trade: Countering China’s Trade and Investment Agenda: Opportunities for American Leadership, April 18, 2023 

As an anthropologist, I find the trials and tribulations of Chinese society interesting and a series of comments to both this subcommittee and the Finance Committee demonstrate this. These hearings allow me to update previous remarks, which are attached.

The main reasons the United States must focus on China are that it is one of our biggest providers of goods (and sometimes services - although India leads in that department), as well as graduate students who return home (Indian nationals tend to come over on H-1B visas after graduation from Indian schools) AND because they are a major lender, as well as Japan, to facilitate that trade.

The Chinese have also lent substantial sums to African nations, and others, in their Belt Road project. Reports are that these funds have dried up and China is now attempting to collect what was previously owed as payments become due.

The reason for this shift is that they are having a bit of a financial crisis. China, Inc. had their middle class invest heavily in housing - housing which was unoccupied and substandard. It is also in crisis because of how it responded to the Pandemic, and how it is responding to the lifting of restrictions.

In other words, they no longer have an agenda. They are in survival mode. The last time we tried to limit an Asian nation in its expansion, by cutting off Japanese oil, a World War resulted. Let us not make the same mistake this time.

We need to make small steps and let the emerging Chinese middle class take care of the Chinese Communist Party. This is also the stance we need to take with Iran. 

Attachment - Unfair Chinese Trade Practices, December 2, 2021

Attachment -  Strategic Benefits of a Multilateral Approach to Trade Policy in the Asia-Pacific Region,  June 22, 2021

Attachment - U.S.-China Relations: Improving U.S. Competitiveness Through Trade, April 22, 2021