A U.S. technology group said in a report on Thursday that China's mercantilist industrial policies were a risk to the global economy and trading system, and called for international pressure on China to force a policy "reset". The report coincided with the release of a separate paper by an influential U.S. business chamber criticizing Beijing's "Made in China 2025" plan, which aims to dramatically increase domestically made products in 10 sectors, from robotics to biopharmaceuticals.
Sens. Shelley Moore Capito (R-W.Va.) and Amy Klobuchar (D-Minn.) are pushing for the federal government to start measuring the impact of broadband on the economy. The two co-chairs of the Senate Broadband Caucus introduced a bill on Wednesday that would require the Bureau of Economic Analysis to study the economic effects of broadband deployment and adoption.
By the early 2020s, rivalry for industrial innovation will accelerate between the U.S. and China. Ironically, the Trump White House has opted for a poor-economy industrial policy, whereas China has a rich-economy policy. The former seeks past glory; the latter cannot wait to get to the future.
A European business group says China is violating its free-trade pledges by pressing foreign makers of electric cars and other goods to hand over technology under an industry development plan that is likely to shrink access to its markets.
The new Republican chairman, speaking just two days after the two-year anniversary of the landmark Open Internet Order, pledged to approach regulation with a “light-touch” approach. He said the rules have stifled economic growth and investment in the broadband industry.
“Governments from East to West all want the same thing: economic growth. Now more than ever, world economies must choose whether they will grow forward into the future or shrink back from endless innovative potential,” said Mark Elliot, executive vice president of GIPC. “Each year, this report attempts to highlight best practices among the world’s intellectual property environments. In 2017, many of the same challenges remain.
“This year’s Index shows that a clear pack of leaders has emerged: the United States, United Kingdom, Japan, and the European Union. But all that invest in the systemic recognition and protection of IP stand to reap the benefits: foreign investments, healthier home-grown industries that export innovative products, and a reputation as a place where the world can do business. From the most developed countries to the least, countries that demonstrate a commitment to IP will reap a reward.”
Offshoring production from the United States to factories overseas has arguably done a lot of damage to the U.S. economy. Over the last three decades, the trade deficit ballooned and millions of American manufacturing jobs were lost. And with those jobs, according to analysts, America also lost some of its innovative edge.
On a deal-by-deal basis, some foreign direct investment from China is a net positive for the U.S. economy. But at least one-third comes from Chinese state-owned enterprises, and it is likely that considerably more is guided and supported by the Chinese government as part of an “indigenous innovation” strategy that employs mercantilist policies and specifically targets sectors that are strategically important for U.S. national security or economic leadership.
A White House report has warned that Chinese industrial policies pose a real threat to the US semiconductor industry. The report, submitted before US President Barack Obama by the President’s Council of Advisors on Science & Technology (PCAST), argues that the US semiconductor industry needs to innovate and run faster in order to mitigate the threat posed by Chinese industrial policy and strengthen the country’s economy.