Page 48 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
understanding. Due to the pandemic, no major tended to underappreciate those of World War
economy but China could maintain its economic I — especially about how rivalrous great powers
growth in 2020. Every country's economy has can stumble into war when diplomacy breaks
suffered a huge loss, resulting in the slump down down and military machines gin up. Thankfully,
of global economy. The Sino-US cooperation in the US-China relationship is still a long way
can contribute to the recovery of the losses and from any parallel with August 1914. But just as
turnaround of the economy. In this case, China an unexpected event — a faraway assassination,
can inject impetus and confidence into the global in Sarajevo, on June 28 of that year — lit a match
economy, especially that of developing countries. on a geopolitical brew that had become highly
The US also has many things to do as the largest combustible, the world should be wary about
economy of the world. The Sino-US reconciliation letting the US-China relationship deteriorate too
is essential to saving human kind from the much right now” (O’Hanlon).
curse of the virus, turning around economy, and
bringing about peace on earth (Hassan). Strategic Competition Act of 2021
The United States must be resolute in response In April 2021, the Senate passed one of the
to China’s rise. But there should be simultaneous largest industrial bills in US history in a bipartisan
efforts at reassurance or de-escalation, rather effort to ensure the US remains competitive
than deliberate provocation. Alas, Washington with China as one of the globe’s technological
frequently seems to be ignoring the reassurance powerhouses. The bill, which passed the chamber
part. According to Michael E. O'Hanlon, senior 68-32, commits roughly US$250 billion in funding
fellow and director of research in Foreign Policy for scientific research, subsidies for chipmakers
at the Brookings Institution, President Donald and robot makers, and an overhaul of the National
Trump was on reasonable economic ground in Science Foundation. The scope of the bill, the
using the Committee on Foreign Investment in final product of at least six Senate committees
the United States to impede Chinese acquisitions and almost all members of the chamber, reflects
of American high-tech assets and companies. the many fronts in the US-China rivalry. It also
He was also right to mount a global campaign likely represents one of the last major bipartisan
against Huawei’s ambitions to build 5G networks initiatives of 2021, proof that US lawmakers are
throughout much of the world. President Biden broadly in favor of legislation that works to counter
has been correct in sustaining these policies. Beijing’s economic and military expansion. Failure
But Trump’s sweeping use of tariffs was less to expand the nation’s semiconductor production,
constructive — and, so far at least, Biden has or reroute rare earths supply chains, advocates
retained them. O’Hanlon believes, “The US has say, could leave the US at a strategic disadvantage
seen this kind of thing before in American foreign in the years ahead. The largest part of the US
policy. During the Cold War, reasonable concern Innovation and Competition Act is a proposal
with Stalin and global communism led to not previously known as “Endless Frontier,” written by
only the smart intervention in Korea and the Senate Majority Leader Chuck Schumer, D-N.Y., and
construction of alliance systems in Europe and Sen. Todd Young, R-Ind. Endless Frontier overhauls
Asia, but also the Vietnam imbroglio. In 2002 the National Science Foundation, appropriates
and 2003, bipartisan fervor to respond decisively tens of billions for the NSF between fiscal 2022 and
to the 9/11 attacks led us to a poorly prepared 2026, and establishes a Directorate for Technology
Iraq intervention. Many Democrats (including a and Innovation. “Passing this bill— now called
majority of Senate Democrats) were supportive at the US Innovation and Competition Act—is the
the time, just as both parties supported Vietnam moment when the Senate lays the foundation for
for years — reflecting a national proclivity at another century of American leadership,” Schumer.
times toward hawkish groupthink on matters of “Around the globe, authoritarian governments
national security. According to O’Hanlon, “The believe that squabbling democracies like ours can’t
US understood many of the lessons of World unite around national priorities,” he added. “Well,
War II and the Cold War very well, including the let me tell you something: I believe that they are
dangers of appeasement, but the country has
48
understanding. Due to the pandemic, no major tended to underappreciate those of World War
economy but China could maintain its economic I — especially about how rivalrous great powers
growth in 2020. Every country's economy has can stumble into war when diplomacy breaks
suffered a huge loss, resulting in the slump down down and military machines gin up. Thankfully,
of global economy. The Sino-US cooperation in the US-China relationship is still a long way
can contribute to the recovery of the losses and from any parallel with August 1914. But just as
turnaround of the economy. In this case, China an unexpected event — a faraway assassination,
can inject impetus and confidence into the global in Sarajevo, on June 28 of that year — lit a match
economy, especially that of developing countries. on a geopolitical brew that had become highly
The US also has many things to do as the largest combustible, the world should be wary about
economy of the world. The Sino-US reconciliation letting the US-China relationship deteriorate too
is essential to saving human kind from the much right now” (O’Hanlon).
curse of the virus, turning around economy, and
bringing about peace on earth (Hassan). Strategic Competition Act of 2021
The United States must be resolute in response In April 2021, the Senate passed one of the
to China’s rise. But there should be simultaneous largest industrial bills in US history in a bipartisan
efforts at reassurance or de-escalation, rather effort to ensure the US remains competitive
than deliberate provocation. Alas, Washington with China as one of the globe’s technological
frequently seems to be ignoring the reassurance powerhouses. The bill, which passed the chamber
part. According to Michael E. O'Hanlon, senior 68-32, commits roughly US$250 billion in funding
fellow and director of research in Foreign Policy for scientific research, subsidies for chipmakers
at the Brookings Institution, President Donald and robot makers, and an overhaul of the National
Trump was on reasonable economic ground in Science Foundation. The scope of the bill, the
using the Committee on Foreign Investment in final product of at least six Senate committees
the United States to impede Chinese acquisitions and almost all members of the chamber, reflects
of American high-tech assets and companies. the many fronts in the US-China rivalry. It also
He was also right to mount a global campaign likely represents one of the last major bipartisan
against Huawei’s ambitions to build 5G networks initiatives of 2021, proof that US lawmakers are
throughout much of the world. President Biden broadly in favor of legislation that works to counter
has been correct in sustaining these policies. Beijing’s economic and military expansion. Failure
But Trump’s sweeping use of tariffs was less to expand the nation’s semiconductor production,
constructive — and, so far at least, Biden has or reroute rare earths supply chains, advocates
retained them. O’Hanlon believes, “The US has say, could leave the US at a strategic disadvantage
seen this kind of thing before in American foreign in the years ahead. The largest part of the US
policy. During the Cold War, reasonable concern Innovation and Competition Act is a proposal
with Stalin and global communism led to not previously known as “Endless Frontier,” written by
only the smart intervention in Korea and the Senate Majority Leader Chuck Schumer, D-N.Y., and
construction of alliance systems in Europe and Sen. Todd Young, R-Ind. Endless Frontier overhauls
Asia, but also the Vietnam imbroglio. In 2002 the National Science Foundation, appropriates
and 2003, bipartisan fervor to respond decisively tens of billions for the NSF between fiscal 2022 and
to the 9/11 attacks led us to a poorly prepared 2026, and establishes a Directorate for Technology
Iraq intervention. Many Democrats (including a and Innovation. “Passing this bill— now called
majority of Senate Democrats) were supportive at the US Innovation and Competition Act—is the
the time, just as both parties supported Vietnam moment when the Senate lays the foundation for
for years — reflecting a national proclivity at another century of American leadership,” Schumer.
times toward hawkish groupthink on matters of “Around the globe, authoritarian governments
national security. According to O’Hanlon, “The believe that squabbling democracies like ours can’t
US understood many of the lessons of World unite around national priorities,” he added. “Well,
War II and the Cold War very well, including the let me tell you something: I believe that they are
dangers of appeasement, but the country has
48
