RealClear World recently featured “US Multinationals Must Exit China” by Michael Lucci. In this op-ed, Lucci argues that U.S. multinationals should fully withdraw from China, cutting ties with its supply chains due to rising political risks, economic instability, and strategic dangers.
Lucci writes:
American industry must execute its own Operation Warp Speed to rapidly extricate all sensitive supply chains from China. Time is of the essence, as responsible fiduciaries long ago reached the inescapable conclusion that China is not a reliable jurisdiction for multinational companies.
America’s economic opening with China was supposed to make China more like us. Instead, it strengthened the Communist Party at our expense and corroded global institutions. China began shattering global norms from the moment they entered the World Trade Organization in 2001, quickly dismissing intellectual property (IP) laws, ignoring trade rules, and leveraging state control to thwart competition and subsidize economic attacks upon America. China’s cheating accelerated while reciprocity was always delayed, allowing China to accumulate massive trade surpluses. The prospect of Chinese market access has been repeatedly dangled to keep U.S. businesses submissive.
Since President Trump’s 2019 warning, everything has gotten worse. China signed a trade deal with President Trump on January 15th, 2020, then immediately reneged, falling well short of the new purchases they promised. The CCP continued to pillage $225 billion to $600 billion of U.S. intellectual property per year. As Bret Boyd argues in a recent op ed, China’s IP theft and industrial subsidies are part of a “deliberate and strategic” attempt by Beijing to skip research costs, deindustrialize global competitors, and ultimately undermine the manufacturing capacity (and thus defense production) of rivals.
Read the full article US Multinationals Must Exit China at www.dailycaller.com
