By Jeff Ferry, CPA Chief Economist On January 16th, a grand jury in the US District Court in Seattle, Washington indicted Chinese telecom equipment maker Huawei for theft of trade secrets and attempting to corruptly obstruct a civil lawsuit. The indictment contains an extraordinary amount of detail on Huawei’s industrial espionage practices and its theft…Details
Editor’s note. The release of this list is required under the Trade Promotion Authority/Fast Track law. It is a precursor to future implementing legislation that congress will consider as the vehicle to approve the USMCA. An International Trade Commission study will also be released in the near future, which the law requires. U.S. Trade Representative…Details
Editors note: In China, “stealing is regarded as a national development strategy and a patriotic duty.” Catch-up is how economists explain the success of China and other fast-growing developing economies. Not having to invent the wheel, the microchip or the theory of continuous improvement is a distinct advantage over having to invent them. [Holman W. Jenkins,…Details
President Trump often criticizes the way other countries keep taking advantage of the United States. And he’s right. There is an inherent unfairness in how other countries trade with America. For decades, the U.S. has generously imposed low tariffs on imports. But in response, other countries continue to levy hefty tariffs on U.S. goods. Op-ed…Details
Editors Note: The “tiny screw story” actually shows why we need the whole supply chain, not just a couple pieces that are sexy. The popularity of service-economy-only policies have many many consequences. SAN FRANCISCO — Despite a trade war between the United States and China and past admonishments from President Trump “to start building their…Details
Editors note: this bill would be a significant challenge to the WTO most favored nation status system. While the bill does not have sufficient support to move, it may provide an education tool to move towards a new Way of managing international trade. [January 24, 2019 | Inside US Trade] Rep. Sean Duffy (R-WI) on Thursday…Details
Editors note: China once again reveals that western hopes of openness and cooperation are futile. Time to consider systematic economic decoupling and protecting agriculture (which is subject to retaliation) through domestic programs. Trade talks are futile. SHANGHAI — Under China’s president, Xi Jinping, the last vestiges of the global internet have slowly disappeared from an online…Details
Urges Congress to consider pro-American tax reform Washington. The Coalition for a Prosperous America (CPA) is asking Congress to improve the federal tax system to promote US trade competitiveness. In a letter to both the Senate Finance and House Ways & Means Committees, CPA pressed for consideration of both a destination-based Sales Factor Apportionment tax…Details
Editor’s note: Wilbur Ross says that talks with China will be very difficult to resolve by March 2, the deadline before tariffs raised rom 10% to 25% on $200B of imports from China. He says the US is seeking structural reforms that take years to implement.
Charlotte Pipe and Foundry in North Carolina accuses a state-subsidized Chinese competitor of stealing their 117-year-old name and trademark and dumping inferior products in world markets; William La Jeunesse reports from Los Angeles.