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WORLD NEWS Tuesday 10 april 2018

AP Explains: U.S. targets heart of China’s economic blueprint

By JOE McDONALD ferring their technology” to
AP Business Writer Chinese enterprises. It said
BEIJING (AP) — President products picked for tariffs
Donald Trump’s threat to were those that benefited
hike tariffs on technology from such tactics.
imports from China strikes Beijing fired back with its
at the heart of Beijing’s own $50 billion list of Ameri-
state-led blueprint for pros- can goods including pork
perity and restoring the na- and steel pipes for a duty
tion’s greatness. increase. Trump ratcheted
For four decades, China up pressure by announcing
has leaned on foreign he might seek higher import
companies to hand over taxes on an additional $100
technology — or help po- billion of Chinese goods.
tential Chinese rivals de- “We remain concerned
velop their own — in ex- that the tariff imposition
change for market access. process could spiral dan-
That helped make China a gerously out of control, giv-
leader in fields from mobile en that this trade action is
phones to high-speed rail really less about trade and
to wind turbines, but also more about China’s rise as
fueled complaints that Chi- a technology leader,” the
na was improperly benefit- researchers said.
ting from those tactics. In this March 23, 2018, file photo, a delivery man calls for directions while pulling a cart of goods WHAT ARE THE CHANCES
Chinese officials say they past a U.S. apparel store in Beijing, China. FOR COMPROMISE?
are willing to negotiate. But Associated Press Chinese leaders launched
the political importance of dent of the European Union components suppliers by Earlier, Washington filed a market-style reform in the
the industrial policy Wash- Chamber of Commerce in imposing import taxes on World Trade Organization 1980s but never aban-
ington wants Beijing to China who has worked in autos assembled in lo- complaint accusing Beijing doned the idea the ruling
change suggests Trump will this country for three de- cal factories with foreign- of imposing unfair contract Communist Party would
face intense resistance. cades. made parts. terms on foreign suppliers guide development and
WHAT’S CHINA’S GAME? “There will be attempts to By the time a WTO panel and allowing its companies state-owned companies
China’s tactics have long appease the United States, ruled in 2008 that violated to keep using their technol- would dominate the econ-
frustrated the United States, but it’s not going to work,” China’s market-opening ogy once a license expires. omy.
Europe, Japan and other said Wuttke. “We are enter- pledges, automakers had In September, Trump Even today, China is the
trading partners. But they ing a new phase of uncer- shifted to local suppliers blocked the Chinese pur- most closed major econ-
avoided an open confron- tainty.” and were teaching them chase of a U.S. maker of omy. Foreign or private
tation because China also WHAT IS THE FUSS ALL how to make better parts. semiconductors in Septem- competitors have little or
was a growing market for ABOUT? U.S. authorities also accuse ber. The same month, the no access to industries in-
power generation, tele- Other governments, not just China’s government of us- president of the European cluding banking, oil and
coms, aerospace and oth- the U.S., say China’s tac- ing or encouraging cyber- Union’s governing body gas, telecoms, airlines, coal
er technology. tics violate the spirit of free spying and theft of technol- announced plans for the mining, steel and railways.
Sentiment against Bei- trade. Many complaints ogy and business secrets. 28-nation trade bloc’s first Foreign automakers and
jing has mounted follow- center on investment or More recently, Western “investment screening” sys- other companies must work
ing complaints by foreign regulatory issues that aren’t governments are on edge tem. through state-owned part-
companies they are being part of its World Trade Or- about state-financed Chi- WHAT IS THE U.S. STRATEGY? ners, sharing technology
squeezed out of promising ganization commitments. nese purchases of semi- Trump’s opening salvo was and developing their skills.
industries as China devel- A builder of Japan’s Shink- conductor, robotics and approval of possible 25 per- Leaders declared in 2013
ops its own suppliers. ansen bullet train, Kawa- other companies while cent tariffs on $50 billion of that market forces would
“For them, it’s a success sto- saki Heavy Industries, com- foreign buyers are barred Chinese aerospace, com- prevail in decision-making,
ry. To change that to some- plained that after it licensed from acquiring most assets puter and other technol- but countered that by say-
thing else, I don’t know rail technology for use in in China. ogy. The U.S. Trade Repre- ing state industries would
how the system would be China, local manufacturers In Europe, that has prompt- sentative’s Office said that still dominate and the
willing to do that, because tried to sell it abroad. ed complaints the con- was in response to Chinese party would intensify con-
it is so successful,” said Jo- Beijing pressed automak- tinent might be losing its policies that “coerce Amer- trol of government-owned
erg Wuttke, a former presi- ers to shift to using Chinese competitive edge. ican companies into trans- companies.q