Thursday, January 05, 2017

Chinese Trojan in US decision making.

Yasheng Huang, Professor at the MIT Sloan School of Management, has written an article cautioning President Elect Donald Trump on how he handles China. He dwells on a phone call between Trump and Tsai Ing-wen, the President of Taiwan, which China sees as a breakaway province. China formally protested against the call. "That phone call violated protocol -- avoidance of direct contact between the US and Taiwan at the presidential level -- that American presidents from both parties have carefully observed for four decades," writes Huang. But why? Why should the US be so afraid of China? It is this hands off approach that has allowed China to bully every one of its neighbors while supporting the barbarous regime in North Korea which is racing to build ICBMs, capable of reaching the US. China has claimed the whole of the South China Sea by drawing a Nine-dash Line on the map, that only it recognises and has blatantly rejected a ruling by an international tribunal at the Hague. The state-run Global Times called the US and Japan 'paper tigers' and 'worrying eunuchs'. Shows how civilised the Chinese are. China is the biggest danger to the world today and only the US can stop it. "But by calling into question the 'One China' policy, Trump is playing with fire," feels Huang. Maybe, but China may not be as powerful as its snarling seeks to convey. Trump has said many times that China keeps its currency artificially low to increase exports to the US. He said that he intends to name it a 'currency manipulator', and to levy a 45% tax on imports from China. Trump has appointed Peter Navarro head of the new National Trade Council which has further enraged the Chinese government. "There is no method to Trump's madness," writes Huang. "His knowledge of international economics is either non-existent or 10 years out of date." Strong stuff. It does not take a PhD in Economics to note that the trade deficit between the US and China keeps on growing, and hit a record $365.7 billion in 2015. That is because China erects barriers to US companies such as Google. Most of top US internet companies are blocked in China. Uber was forced to sell out recently. One of the main reasons for China's strength is the loyalty of Chinese expatriates. They are willing to spy for the mainland even after becoming citizens of other countries. There are units of the Peoples Liberation Army dedicated to steal trade secrets by hacking into US company computers. Strange that there is such an outcry over Russian hacking and not a peep on China, in the US. It maybe because Russia's population is a mere 146.3 million, while China's population is nearly 10 times as much, at 1374.62 million, so it is a much bigger market. So the US surrenders to China even if it is being robbed. Beware of Trojan Horse Chinese professors.

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