There have been a few articles this week [one example: China Cybersecurity Fears Prompt Business Groups to Press Obama, The Wall Street Journal, 12 August] about China's new policies on cybersecurity and counterterrorism laws that present problems for anyone trying to operate a business in the country. This comes up repeatedly, but especially when China's leaders come to visit, as Xi Jinping is about to do.
Our industry leaders, many of whom already work in China, have sent a letter to the White House complaining about China's policies that "limit trade". That is far from accurate. The new policies do a lot more than that, including such things as demanding encryption keys and source code from vendors who operate in China, and forcing them to store data under Chinese control. It is a dangerous trend in what China says is a way to protect themselves from the evils of doing business with foreigners. They always mention Edward Snowden in these discussions, though the White House must laugh every time they do. China has the market on theft of data.
Our trade with China has never been on equal ground. They steal our proprietary and trade secret information; they pump that stolen data back into their own research and development programs; they control pricing of goods so they remain artificially low in their own country, and higher in ours; they make their own businesses thrive on our innovation. That is a good deal more than "limit trade" would imply, but to those who live there and make their goods there, that may be all they can say. The Chinese have a way of getting even if anyone complains about their policies.
I wonder what the Donald, or the Hillary, would do about trade with China. It is the kind of question the debates should be bringing up, and a good reason for the lack of jobs here.
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