As countries increasingly vie to both achieve the highest levels of innovation-based economic growth and attract, grow, and scale innovative enterprises and industries, a growing number have turned to “innovation mercantilist” policies that seek to grow nations’ innovation-based firms and industries through policies such as local production requirements, export subsidies, weak intellectual property (IP) protection, discrimination against foreign firms, economy-specific technical requirements, and data localization requirements.
In the global race for technology leadership, many countries are resorting to “innovation mercantilism” to create unfair advantages for their local industries at the expense of foreign competitors. According to the latest edition of ITIF’s “Global Mercantilist Index,” China is in a class by itself on that front. Given the damage these mercantilist practices do to global innovation, the United States and other free-trading, rule-of-law nations must take stronger steps to push back.
The United States should partially disengage with the Chinese regime to combat its predatory economic practices, according to a recent report by Washington-based think tank The National Bureau of Asian Research. The U.S. administration should pursue defensive measures to stem the flow of critical technologies to China, and work on reaching a ceasefire in the nearly 16-month-long trade war, says the report, which was released Nov. 4.
As trade talks between Washington and Beijing intensified earlier this year, suspected Chinese hackers broke into an industry group for U.S. manufacturers that has helped shape President Donald Trump’s trade policies, according to two people familiar with the matter.
It has been a month since President Trump shook hands with Chinese vice premier Liu He in the Oval Office to signify that the United States and China had reached preliminary agreement on a "substantial phase one" trade deal. But negotiators from the two countries can't seem to translate that handshake into a written document--at least not one that Trump and Chinese leader Xi Jinping are willing to sign.
The U.S. trade deficit fell 4.7% to $52.5 billion in September as the country recorded its first petroleum surplus, but overall imports and exports otherwise fell under the weight of rising global tariffs and a slowing world economy. The goods trade gap with China narrowed by $100 million to $31.6 billion, with exports to the country falling $800 million in September and imports from China falling $1.0 billion.
Intellectual property rules, which were cited in the US Section 301 investigation that launched the trade dispute, have emerged as a key point of contention between the two sides. President Donald Trump has said the partial agreement included unspecified commitments that would help protect American companies.
The US and China struck a partial trade deal on Friday, reaching a truce in their months-long trade war that’s rattled global markets and put President Donald Trump under pressure at home. Trump announced Friday that the two sides agreed on a “substantial phase one” of a trade deal after meeting with Chinese negotiators at the White House.
CNBC’s Jim Cramer said Tuesday that the Trump administration’s move to blacklist some Chinese tech companies will hinder its chances in negotiating a trade deal later this week. “They’re torpedoing the talks,” Cramer said on “Squawk Box.” “Anybody that is hopeful, their hopes are dashed.”
Singapore has overtaken the U.S. to become the most competitive nation in the world, according to the World Economic Forum (WEF). In its 2019 Global Competitiveness Report, the WEF measured the strength of 103 key indicators, such as inflation, digital skills and trade tariffs, across 141 countries.