President Donald Trump boosted tariffs Friday on $200 billion in goods from China and was preparing more in his most dramatic steps yet to extract trade concessions, further roiling financial markets and casting a shadow over the global economy. China immediately said in a statement it is forced to retaliate, though hadn’t specified how as of 3:55 p.m. in Beijing.
In pursuit of a trade deal with China, nothing else measures up to securing real, enforceable protections of American intellectual property. Not tariffs, not more exports, not closing the trade deficit. In fact, stopping China’s theft of American IP will go a long way toward easing all other points of contention. This must remain a non-negotiable.
A new Pentagon report said that China uses "cyber theft" and other methods to bolster its military, which the report claims will continue to grow rapidly. "China uses a variety of methods to acquire foreign military and dual-use technologies, including targeted foreign direct investment, cyber theft, and exploitation of private Chinese nationals' access to these technologies, as well as harnessing its intelligence services, computer intrusions, and other illicit approaches," it said.
The FBI’s director said that the U.S.’s biggest threat is China’s “Whole-of-society Approach” to stealing American innovation. Speaking at the Council of Foreign Relations on Friday, April 26, Christopher Wray said, “Put plainly, China seems determined to steal its way up the economic ladder, at our expense.”
Huawei is the world’s biggest telecoms equipment maker, with a 28 per cent market share -- according to Dell’Oro, the market research company -- and more 5G contracts around the world than any other company. Its closest rivals are Ericsson and Nokia, the European companies. But there is no US group that can build the equipment to transfer signals between mobile phones and the towers or sites that make up the network.
Those who think China can’t catch up in innovation tend to base their arguments on abstractions: A rigid education system stifles creativity, they say, while heavy-handed industrial policies such as the “Made in China 2025” program encourage waste and inefficiency. Those skeptics are ignoring a far more concrete and relevant factor, however: the growing size and sophistication of China’s domestic market.
“A decade ago, the goal was more narrow. Efforts were focused on government espionage and intellectual property theft. Now, China and other nation-states cast a wide net,” Payton said. “They have learned that all information gathering can be useful, whether the end goal is espionage theft and exploitation of intellectual property or political influence.”
A former State Department employee who held a top-secret clearance pleaded guilty Wednesday to misleading investigators about her contacts with Chinese intelligence agents. Court documents accuse Candace Marie Claiborne, 63, of knowingly supplying information to Chinese intelligence agents in exchange for "tens of thousands of dollars in gifts and benefits" over a five-year period.
You know it must be nothing short of transformational when Washington goes on the offensive over Beijing getting ahead in a telecommunications standard. But what is this new 5G technology and why has it got the world’s two biggest economies at each other’s throats? Let’s just say it’s a lot more important than allowing you to download the latest high-definition episode of Game of Thrones on your smartphone in seconds. According to some experts, 5G could change the way we live forever.
The United States and China are in an arms race. Not the familiar military-strength arms race from years past, but still an arms race that will have a profound impact on the two superpowers in the foreseeable future. The Chinese government is throwing its full authority and considerable resources at developing the coveted 5G wireless technology of tomorrow.