Page 33 - Inbound Logistics | April 2017 | Digital Issue

INFOCUS

GLOBAL

THE WORLD AT A GLANCE by Jason McDowell

Trade With China: A Question of Balance

President Trump hasn’t been shy compared to Chinese companies, Administration will use all possible
about his desire to put America on according to the AmChamChina survey. leverage to encourage other countries
more equal trade footing with China, More than 80 percent don’t see the to give U.S. producers fair, reciprocal
but business leaders have traditionally relationship improving any time soon. access to their markets. The purpose of
fought against efforts to force the trade As such, business leaders are this effort is to ensure that more markets
rival into an agreement that’s more increasingly willing to take risks in are truly open to American goods and
equitable for both sides. Dissent is China to get the reciprocity they’ve services and to enhance, rather than
growing, however, according to the historically been denied. While some restrict, global trade and competition.
American Chamber of Commerce are demanding an eye-for-an-eye Such a policy will help grow the global
in China’s (AmChamChina) 2017 approach—deny Chinese investors economy by breaking down long-
Business Climate Survey. access to anything in the United States standing trade barriers and promoting
Early in 2017, China opened its that American companies are denied increased competition.”
doors wider to foreign investment, in China—many stakeholders fear The best possible outcome would be
but investors have complained that such aggressive action would spark a a positive, reciprocal trade agreement
government regulators from the trade war, the results of which remain in which both the United States and
country’s government frequently difficult to predict. China benefit, but the odds of getting
intercede to make sure more money The Trump administration’s official there without a lot of posturing and
comes in than goes out. Four out of position, put forth in the National retaliation are slim. Shippers and
five companies feel foreign business is Trade Policy Agenda for 2017, released providers holding stakes in China
unwelcome in China, and more than March 2017, appears to side with should be taking action to buffer
50 percent of American businesses those U.S. companies that are tired of whatever collateral damage might come
operating in China claim that they unequal opportunity: “It is time for a from negotiations that are sure to get
receive unfair treatment when more aggressive approach. The Trump worse before they get better.

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