Saturday, November 4, 2017

How China Cheats, by Derek Scissors

President Trump is heading to Asia, with a stop in Beijing. At the same time, his administration is considering unprecedented US trade action against China. While being wined and dined, the President should keep sight of longstanding Chinese predatory economic practices, where an American response is long overdue.
The starting point is that the Chinese government is the world’s undisputed leader in being able to subsidize. When it wants production to ramp up, it can grant free land, free energy, and repayment-optional bank loans to firms making what Beijing wants them to make.

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