Hank Greenberg on China Trade

Maurice Raymond "Hank" Greenberg was on Fox Business today with some good ideas about trade.  He knows.  He was one of the originals with business in China and is still there doing business, and making money.  He built bridges in the insurance industry and expanded his world-wide business.   Two things I noted from his lengthy comments:

1.  China is no longer a third world trader and it is still formally treated like one.  The Chinese have a good deal when we ignore how the World Trade Organization treats China, and Greenberg simply said, "We need to remind them of that."  In his opinion piece in the Wall Street Journal  he reminds us that the US was very helpful to China in establishing processes that would allow them to be successful and grow.  They took advantage of that, but now seem entitled to continue that same treatment.  That is a simple and elegant approach that may have been overlooked in the current White House.  He did say it is unlikely to produce a good outcome for the US, but it does provide context for further discussions.  He believes China will be the world's number one economy in the near future.  China cannot keep pretending it isn't. 

2.   From his Journal story, he notes that China has to change.  "China cannot expect to continue receiving favorable trade and investment terms in foreign markets when it is unwilling to reciprocate. It is in China’s interest to reform, and the U.S. is right to press to level the playing field. China no longer needs the same accommodations as in its initial stages of economic development. It makes sense to reassess the terms of bilateral trade and make them more fair and equitable, with each trading partner securing equal and unhindered market access across all sectors." 

I admire his approach and wish he had more influence in these trade talks.  He certainly has the experience with China and understands what it takes to get progress in negotiations.