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China Is Hurting Global Investments With The Trade War

Dec. 04, 2018 2:14 PM ET1 Comment
Todd Royal profile picture
Todd Royal


  • China is becoming a global national security threat through continued intellectual property theft.
  • Global, interlinked economies seemingly have no choice but trade barriers and tariffs to bring China into the rules based, global order.
  • The United States under the Trump administration is leading this geopolitical, trade fight.

A recent, “striking comment,” from former White House Economic Advisor and renowned, free-trader Gary Cohn said this about the US-China trade war:

“What the Chinese have done to us (the United States) for the last two decades is just wrong…If the Chinese are just stealing [technology] and knocking it off, the global economy and globalization doesn’t work.”

Cohn then says President Trump is “correct,” for his “unpredictable path of negotiation,” with China, but the end goal of fair trade between the United States (US) and China is what needs to occur over Chinese theft of intellectual property (IP) and a hostile model of state-capitalism. Cohn’s comments matter since he exited the White House in March over disagreements with Trump over steel and aluminum tariffs the same evening the administration, “levied another round of tariffs,” on Chinese goods. The counter is Cohn has broken with free trade between nations and open markets that has worked for over seventy years since World War II (OTCPK:WWII). Additionally, this could spark into security risks than what is currently taking place – which is economic retaliatory tit-for-tat and decoupling– between China and the US. Unfortunately global markets are witnessing the clash of domestic politics, international geopolitics and nation-state gamesmanship.

Now prominent Chinese economists, “blame the ‘China model’ for US trade war.” Other leading Chinese intellectuals believe Trump’s far-reaching trade war is pressuring Beijing to reevaluate their state-capitalism model that has provoked western outrage. Breaking with Communist Party orthodoxy is risky – but state-led-capitalism has caused Trump to try and block China’s rise – and this has far-reaching implications for global growth and investments that could hurt economies into 2019.

The criticism highlights the split between the reform and statist-minded camps among Chinese policymakers and bureaucrats. Zhang Weiying, professor of Peking University’s National School of Development

This article was written by

Todd Royal profile picture
Todd Royal is a writer and consultant based in southern California on foreign policy, national security and all forms of energy.

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