We Should Sell to - But Not Buy From - Communist China
It’s Time to Tame the Red Dragon
Communist China is a titanic, omni-directional pain in the posterior - to nigh everyone on the planet.
“China’s island building is aimed at securing a weak link in its maritime trade networks.”
“China wants everything from Africa: its strategic location, its oil, its rare earth metals, and its fish, leaving African nations indebted to Beijing.”
And on, and on, and….
Communist China is a titanic, omni-directional pain in the posterior on global trade. To the entire globe - and to US particularly.
“The United States Trade Representative, which led the seven-month investigation into China's intellectual property theft and made recommendations to the Trump administration, found that ‘Chinese theft of American IP currently costs between $225 billion and $600 billion annually.’
“Those numbers are in line with a 2017 report from the Commission on the Theft of American Intellectual Property.”
We’ve been trading with Communist China since at least the early 1990s. Which means Communist China has stolen far in excess of $4 trillion of our IP.
These last three examples - all have to do with Communist China mass-stealing IP.
As we are in a very early stage of the growing Information Economy - IP will be the coin of the realm for decades and decades to come.
Even more important than IP has been the last thousand or so years.
Humanity’s decision to secure IP protections - may have done more than anything ever to contribute to our emergence from the caves and out of the shadows.
As everything goes digital - IP becomes even more important.
Communist China certainly grasps the concept. Which is why they’ve done so much to secure so much IP - by any means necessary.
Meanwhile, our trade practices with everyone on the planet - have for decades been criminally stupid.
With Communist China - they have been criminally stupid and institutionalization-worthy insane.
God bless Donald Trump - he is finally dealing with the giant red dragon in the room.
As President Trump negotiates with the crimson lizard - here’s hoping companies that very stupidly located any portion of their business in Communist China…relocate elsewhere.
I would love for them to relocate in the US. But out of China is of paramount enough import.
Trump should hammerlock China with tariffs - to help make their departure decisions easier.
Look - I am a huge proponent of free markets. No tariffs, import limits or government subsidies - from everyone everywhere.
But when free markets stand at odds with US and global security - the free market has to lose out.
Communist China - is a titanic threat to US and global security.
If you are doing business on Communist China’s turf - you are incessantly subjected to Communist Chinese “inspections” of everything you’re doing.
And by “inspections” - I mean (in part) serial theft of your IP.
If you are instead manufacturing in Kalamazoo, Michigan - the Communist Chinese theft of your IP drops precipitously.
Which brings us to Communist China’s 1.4 billion prospective consumers. The Holy Grail of the Free Trade Uber Alles freaks. That huge number really gets their salivary glands a-going.
Much of China's forced IP transfer occurs - in exchange for access to China’s market.
The Free Trade Uber Alles freaks - in a frothy, frenzied haze - hand over all the IP for which China asks. Because they HAVE to have access to that 1.4 billion people.
“The Capitalists will sell us the rope with which we will hang them.”
-- Vladimir Lenin
Heck, Vlad - the Free Trade Uber Alles freaks are giving it away.
But don’t let the huge China population number fool you. Most Chinese are still very, very poor. So you are granted access to about a billion people - who have trouble affording food. Let alone your stuff.
The only reason anyone in China can afford anything - is because we have been propping up their Communist government for decades. With our titanically stupid trade practices.
Communist China without global trade - is Venezuela.
We have been funding Communist China’s inconceivably heinous treatment of their population.
We have been funding the entirety of Communist China’s mass, malevolent expansion all over the world.
When we go to war with them in the next couple of decades or so - we will be the first nation in history to have funded both sides of it.
Because we have been very exceedingly stupid.
We still have a little time - to save ourselves…from ourselves. As Trump is trying to do.
And while I recently wanted this…
…I have since had my expectations of humanity lowered further still.
The same nations that we got three decades ago to not trade with Communist Russia - we can not today get to not trade with Communist China.
Heck, we can’t even get them to work with us on comparatively minuscule Iran.
So we should get everyone the heck out of China. And stop buying stuff from China. In the interest of US and global security.
But we have to sell stuff to China - because humanity will sell to China. Because humanity never fails to fail us.
But selling stuff to China - actually can advance our security interests.
Creating IP - takes a LOT of time…and costs a LOT of money.
If we lock China out of illegal access to our IP - they don’t have a freebie head start on the next new things.
Rather than stealing it - they’ll have to spend their own time and money developing it.
And - because they are currently behind us on the curve - they’ll have to pay us for it.
If they’re paying us for it - it inherently means they will remain behind us.
The cell phone industry average of development-to-deployment of the next generation tech - has been about eighteen months.
By the time you’re buying the newest smart phone - the designers are already a year-plus into designing the next new smart phone IP.
By the time China is paying us for the IP to make their newest smart phones - our designers will already be a year-plus into designing the next one’s IP.
Lather, rinse, repeat - and we will go a long way towards keeping Communist China in our rearview mirror.
Which is precisely where everyone on the planet should want them.
This first appeared in Red State.