It has been nearly a year since I wrote about my frustration with the West’s acceptance of China’s double standards, unfair play in international trade, and currency manipulation. Since then, we have exited recession, the bill for the stimulus has come in much lower than anticipated, and many sectors of the U.S. economy are once again turning healthy profits. Now certainly seems like the right time for us to pull our tail from between our legs and grow a pair, and recent developments seem to indicate that will finally happen.
While I burned with anger time after time over the past year as Obama and his administration kowtowed to China, overlooking slight after slight, ignoring their horrific record on human rights, and letting them get away with cyber crime. Finally, led by an interesting champion – Google – the U.S. government is starting to make moves to reassert itself and hold China accountable for its actions. Admittedly, in the midst of crisis, I can see the practicality of not biting the hand of our largest creditor. My hope is that as our economy reinvigorates, so will our resolve to ensure that China plays by international trade regulations and the rule of law. Issuing a request for a formal explanation of the recent hacking attempts on Google and the defense and chemical industry is a welcomed first step.
It is refreshing to see Google so strongly rebuke China for trying to hack into the Gmail accounts of dissidents and human rights activists, and finally refusing to filter search results of views contrary to the Chinese government’s interests. It is also good to hear several other firms, including Yahoo, speak out on Google’s side. (Shame on you Microsoft and GM for not having the chutzpa to do the same!)
Traditional wisdom has said China cannot be ignored because it represents the largest potential market in the world. The problem has always been that China uses foreign firms trying to enter the Chinese market to acquire skills and technology, and then actively stacks the deck against them. This has been accomplished in large part by not allowing majority foreign owned companies to exist (most foreign operations of multinationals in China are at least 51% owned by a local partner) and applying tariffs on imports. Very little money has been made by outside firms in China over the past 20 years – rather we have simply given them everything they need to compete against us. It is about time that Western companies started recognizing that it is nigh impossible to make money in China, and not being afraid of being left behind by choosing not to do business there.
Perhaps if the U.S. government is too frightened to take the lead against Chinese cheating, abuses, and criminal activity, our newly sagacious corporations will raise their swords and drag the reluctant politicians into the battle.
Sectors are not that singular to be many. Sectors are so much more alive
Posted by: Mario51 | 01/17/2010 at 05:26 PM
Ars Technica has got a good summary of how the news of Google vs. China has been unfolding: Google vs. China: the Chinese government reacts.
Been reading about it a lot from various sources: Jack Yan (who once had an active blog here at VOX), OSNews (where I found the Ars Technica article), and some others I can't think of right now/don't have the patience to identify and categorize.
I've also tried to follow stories that address the trade disparity between the U.S. and China-- from the intentional devaluing of the yuan, to retaliation against trade protection, etc. I did go back to your Ensuring Free and Fair Trade post and it does seem that a lot of trade policy for the U.S. concerning Eurasia generally (or at least towards The Powers That Be) has been "we can't afford to piss them off".
I think Google and the U.S. government have got a real whopper of a fight on their hands and I doubt very much that the PRC will go with it without struggling the whole way, as they are right now. They are quite busy shifting or deflecting the blame as they seem to always have done.
Interestingly enough, however, for all its posturing, there is talk that the North Korean government really wants to reconcile with the U.S. and the news so far there is pretty fascinating, if not clearly hopeful.
Posted by: jaklumen | 01/19/2010 at 11:13 PM