ability to source most of its production in low cost countries such as China

Ability to source most of its production in low cost

  • No School
  • AA 1
  • 47

This preview shows page 10 - 13 out of 47 pages.

ability to source most of its production in low cost countries, such as China, has helped enable the company to become a highly competitive and profitable firm as well as a source for high paying jobs in the US. Apple products illustrate that the rapidly changing nature of global supply chains has made it increasingly difficult to interpret the implications of the US trade data because, while they may show where products are being imported from, they often fail to reflect who benefits from that trade. 6 6. Ibid.
Image of page 10

Subscribe to view the full document.

US - CHINA Trade War: Analyses of Deeper Nuances and Wider Implications 11 The US View The US President, Donald Trump, has for years accused the Chinese Government of unfair trade practices, which he says puts the US companies at a disadvantage. Many other foreign leaders have agreed that China unfairly subsi- dises its businesses and has at times devalued its currency to boost exports. However, most countries have favoured a multi - national approach to apply pressure on Beijing. While China has significantly liberalised its economic and trade regimes over the past three decades, it continues to maintain or has recently imposed a number of state directed policies that appear to distort trade and investment flows. The US policy - makers and stake holders have expressed concern that China does: - Extort or steal its rivals intellectual property. Pursue industrial policies aimed precisely at creating advantages for many designated key sectors of its economy over foreign competitors. Limit exports of critical commodities like rare earths to give its own producers advantage on rival non - Chinese companies to move opera- tions to China. Subsidise massive overcapacity in goods like steel and aluminium in order to undercut the competition globally. Place many restrictions on foreign providers of farm products along with banking, insurance, tele - communications, Internet related, audio - visual, express delivery, legal and other services. Sue its trade partners in the WTO simply because they re exercising their right to bring actions against China. Remain determined to keep foreign firms in the dark about the regula- tions concerning licensing and operating requirements; product, invest- ment, business expansion approvals and business license renewals. The US Government s grievances centre on the Chinese trade practices impacting technology transfer, intellectual property and innovation. The Trump administration s Section 301 Report identifies four areas of specific concern, which are summarised below: - China has an unfair regime of forced technology transfer, implemented through formal and informal practices and policies. Through foreign investment restrictions, US companies seeking to operate in China are
Image of page 11
US - CHINA Trade War: Analyses of Deeper Nuances and Wider Implications 12 made to engage in a joint venture with a Chinese partner, most often a state owned enterprise. In selected sectors, such as aero - space and
Image of page 12

Subscribe to view the full document.

Image of page 13
  • Fall '19

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes