Page 10 - 2021 White Paper
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1 White Paper on the Business Environment in China
severely impact China’s manufacturing output two to companies to compete better with Chinese rivals. Don’t
three years from now. The last time a similar situation expect a new deal with China in the first 100 days of the new
happened was in 2016. Our 2017 study predicted the presidency. According to Reuters, Biden said, “I want to make
pre COVID-19 slowdown in China’s economic growth in sure we’re going to fight like hell by investing in America first.”
2018 and 2019 (GDP growth dropped to 6.6% in 2018 He wants to talk with American allies before proceeding.“The
and 6.1% in 2019). best China strategy, I think, is one which gets every one of our
— or at least what used to be our — allies on the same page.”
The world's two largest economies have been
locked in a bitter trade dispute since the beginning of Chinese foreign ministry spokeswoman Hua
the Trump presidency. The dispute has seen the US Chunying responded to Biden’s comments by
and China impose tariffs on hundreds of billions of reiterating a long-standing position that trade between
dollars worth of one another's goods. President Trump the two countries should be mutually beneficial. She
has long accused China of unfair trading practices said, “Trade issues should be dealt with in the spirit
and intellectual property theft. In China, there is a of mutual respect and equal consultation.” We agree
perception that America is trying to curb its rise as a with the leaders from both countries, but governments
global economic power. Negotiations are ongoing but do not run on a linear plane. Both sides must return
have proven difficult, but this remains necessary. Both to the table. Both sides want a strong trade deal and
sides signed a preliminary agreement widely known as international business should not have to wait. It’s time
the Phase I Deal in January of 2020. It has now been to get busy.
over a year and some of the thorniest issues remain
unresolved. Now going into a new administration in the Finally, after explaining how we believe the world sees
US, uncertainties around the trade conflict continue China’s economy, we make a single recommendation:
to hurt businesses and weigh heavily on the global continue moving forward, and continue offering the
economy. The Trump administration raised tariffs on Chinese people opportunities for improved health,
a range of Chinese imports and implemented harsh wealth and happiness. This opinion is, necessarily,
sanctions against Chinese companies such as Huawei transformative. We seek not to conserve what came
Technologies Co., citing national security, leading to a before but rather to build newer, fairer and more
deterioration in relations. The relationship between profitable structures upon that robust foundation. This
China and the US has fallen to its lowest level since is a strategy of synthesis, and it is one with which we
Beijing and Washington established formal diplomatic hope you will agree whole-heartedly.
ties over 40 years ago, with the two countries clashing
on a range of issues including trade and the handling With best regards,
of the Covid-19 pandemic. But many business leaders
expected the Biden administration to maintain a tough Dr. Harley Seyedin
stance on China when it comes to access to hi-tech President, American Chamber of Commerce in South China
equipment and components. President Biden may Winner of the 2017 Oslo Business for Peace Award (together with
have inherited the trade conflict with China that now Elon Musk) , awarded by the Award Committee of Nobel Laureates in
involves over $700 billion in bilateral trade, but he Peace and Economics
owns it now. Visiting Scholar, Jinan University, Guangzhou, PRC
President, Allelon Energy Partners
The tariffs have got to go, but Biden has already
announced that he will not immediately cancel the trade
agreement that Trump struck with China nor take steps
to remove tariffs on Chinese exports. Biden said he would
pursue policies targeting China’s “abusive practices,” such
as “stealing intellectual property, dumping products, illegal
subsidies to corporations” and forcing “tech transfers” from
US companies to Chinese counterparts. But he also stressed
the need to develop a bipartisan consensus at home and
focus government efforts on investments in research and
development, infrastructure and education that would allow
10
severely impact China’s manufacturing output two to companies to compete better with Chinese rivals. Don’t
three years from now. The last time a similar situation expect a new deal with China in the first 100 days of the new
happened was in 2016. Our 2017 study predicted the presidency. According to Reuters, Biden said, “I want to make
pre COVID-19 slowdown in China’s economic growth in sure we’re going to fight like hell by investing in America first.”
2018 and 2019 (GDP growth dropped to 6.6% in 2018 He wants to talk with American allies before proceeding.“The
and 6.1% in 2019). best China strategy, I think, is one which gets every one of our
— or at least what used to be our — allies on the same page.”
The world's two largest economies have been
locked in a bitter trade dispute since the beginning of Chinese foreign ministry spokeswoman Hua
the Trump presidency. The dispute has seen the US Chunying responded to Biden’s comments by
and China impose tariffs on hundreds of billions of reiterating a long-standing position that trade between
dollars worth of one another's goods. President Trump the two countries should be mutually beneficial. She
has long accused China of unfair trading practices said, “Trade issues should be dealt with in the spirit
and intellectual property theft. In China, there is a of mutual respect and equal consultation.” We agree
perception that America is trying to curb its rise as a with the leaders from both countries, but governments
global economic power. Negotiations are ongoing but do not run on a linear plane. Both sides must return
have proven difficult, but this remains necessary. Both to the table. Both sides want a strong trade deal and
sides signed a preliminary agreement widely known as international business should not have to wait. It’s time
the Phase I Deal in January of 2020. It has now been to get busy.
over a year and some of the thorniest issues remain
unresolved. Now going into a new administration in the Finally, after explaining how we believe the world sees
US, uncertainties around the trade conflict continue China’s economy, we make a single recommendation:
to hurt businesses and weigh heavily on the global continue moving forward, and continue offering the
economy. The Trump administration raised tariffs on Chinese people opportunities for improved health,
a range of Chinese imports and implemented harsh wealth and happiness. This opinion is, necessarily,
sanctions against Chinese companies such as Huawei transformative. We seek not to conserve what came
Technologies Co., citing national security, leading to a before but rather to build newer, fairer and more
deterioration in relations. The relationship between profitable structures upon that robust foundation. This
China and the US has fallen to its lowest level since is a strategy of synthesis, and it is one with which we
Beijing and Washington established formal diplomatic hope you will agree whole-heartedly.
ties over 40 years ago, with the two countries clashing
on a range of issues including trade and the handling With best regards,
of the Covid-19 pandemic. But many business leaders
expected the Biden administration to maintain a tough Dr. Harley Seyedin
stance on China when it comes to access to hi-tech President, American Chamber of Commerce in South China
equipment and components. President Biden may Winner of the 2017 Oslo Business for Peace Award (together with
have inherited the trade conflict with China that now Elon Musk) , awarded by the Award Committee of Nobel Laureates in
involves over $700 billion in bilateral trade, but he Peace and Economics
owns it now. Visiting Scholar, Jinan University, Guangzhou, PRC
President, Allelon Energy Partners
The tariffs have got to go, but Biden has already
announced that he will not immediately cancel the trade
agreement that Trump struck with China nor take steps
to remove tariffs on Chinese exports. Biden said he would
pursue policies targeting China’s “abusive practices,” such
as “stealing intellectual property, dumping products, illegal
subsidies to corporations” and forcing “tech transfers” from
US companies to Chinese counterparts. But he also stressed
the need to develop a bipartisan consensus at home and
focus government efforts on investments in research and
development, infrastructure and education that would allow
10
