ANALYSIS: TRUE. China Is a Dangerous Rival, and America Should Treat It Like One. “Enough with the endless talks and handshakes. We need to untie the American economy from China.”
After years of unsuccessful talks and handshake deals with Beijing, the United States should change course and begin cutting some of its economic ties with China. Such a separation would stop intellectual property theft, cut off an important source of support to the People’s Liberation Army and hold companies that are involved in Chinese human rights abuses accountable.
This will be no easy task. Some industries will have problems finding new suppliers or buyers, and there are entrenched constituencies that support doing business with China. They argue that any pullback could threaten economic growth. But even if American exports to China fell by half, it would be the equivalent of less than one-half of 1 percent of gross domestic product. The cost of reducing Chinese imports is harder to assess, but there are multiple countries that can substitute for China-based production, none of them strategic rivals and trade predators.
The United States economy and its national security have been harmed by China’s rampant theft of intellectual property and the requirement that American companies that want to do business in the country hand over their technology. These actions threaten America’s comparative advantage in innovation and its military edge.
Indeed. Trade is much better than war, but allowing a Communist autocracy into the WTO and to control such a huge chunk of our technology stack were huge mistakes.