SMM News: CNN reported on May 27, the original title: China is not the source of our economic problems, corporate greed is
China is not the enemy. This is a country that strives to improve the living standards of its people through education, international trade, infrastructure investment and technological improvements. Faced with the historical reality of poverty and falling behind the powerful countries, China is doing what any country would do. But the Trump administration's attempt to stop China's development could be disastrous for both the US and the world.
Trade relations between the United States and China have been mutually beneficial for many years, but some American workers are unable to compete because of improved production efficiency and low labor costs in China. This is a normal phenomenon of market competition, for which we should not blame China, but should tax the soaring profits of America's own multinationals, using the money to help working families, rebuild dilapidated infrastructure, and train new employment skills.
We should recognize that China, which has suffered too long geopolitical and economic setbacks, is now just trying to make up for lost time. China has experienced rapid growth over the past 40 years, but the problems left over from poverty, unrest and invasion for more than a century remain. This time, Chinese leaders want to do things well, which means they are no longer willing to succumb to the United States or other Western countries.
China is now the second largest economy, but it is still in the process of extricating itself from poverty and catching up. In 1980, China's per capita GDP was only 2.5% of that of the United States, and by 2018 it had risen to only 15.3% of that of the United States. China's development strategy is similar to that of Japan, South Korea, Singapore and so on. From an economic point of view, what China is doing is no different from that of any country in catch-up. It is too simplistic for the United States to say that China "steals" technology. Backward countries upgrade their technologies in a variety of ways, such as learning, imitating, buying, mergers and acquisitions, investment, and extensive use of knowledge that expires under patent protection. Competition for intellectual property is always inevitable, as is the case among US companies-a competition that is only part of the global economic system. We cannot rely on protection to keep the technology ahead, it is important to continue to innovate.
In today's world, technology and knowledge spread more rapidly than ever before, and no country can dominate the world. If China had a small population, such as South Korea, it would certainly be hailed by the United States as a great development success story-and, of course, China would have been successful. Trade with China provides the United States with cheap consumer goods and increasingly high-quality products. This will indeed lead to job losses in areas such as US manufacturing, which competes directly with China. But that's what trade is. It is wrong to blame China for this. Many US companies have reaped the benefits of making or exporting from China, where cheap Chinese products allow US consumers to enjoy a higher standard of living. The United States and China should continue to negotiate, rather than unilaterally threatening and blaming and provoking a trade war.
The United States is facing a real struggle, but not with China, but with its own big companies. Many of them make a lot of money, but pay their employees little. Us business leaders and the super-rich are pushing for tax cuts, expanded monopolies and offshoring to boost profits while rejecting policies that make US society safer.
Trump has repeatedly attacked China, seemingly believing that the Chinese will once again succumb to the West. The United States has suddenly and unilaterally changed the rules of international trade in an attempt to crush successful Chinese companies. This can only be wishful thinking. For the past 40 years, China has been following the rules of the West, catching up like America's Asian allies. Now, the United States is trying to draw money from China. We may move towards a conflict with China-first economically, then geopolitical and military, and ultimately for everyone. There is no winner in this conflict. However, the shallowness and depravity of American politics today put us on this path. A trade war will not solve the problems of the United States. Instead, we should seek domestic solutions. In the process, we should also recognize that we benefit much from cooperation with China than reckless and unfair provocation.