March 22, 2018
With Trump economic crackdown, a new era in U.S.–China relations
The Trump administration announced today a plan to levy investment restrictions and roughly $60 billion worth of tariffs on China in response to its widespread violation of U.S. intellectual property rights. The message to Beijing is clear: Washington will no longer overlook China’s systematic efforts to acquire American technology.
Why it matters: These economic policies mark the dawn of a new era in U.S.–China relations. Though once a source of stability between the world's two most powerful nations, commerce and investment will from now on be a flashpoint.
The big picture: Beijing pursues U.S. technology by extracting intellectual property from U.S. firms operating in China, investing in American companies and startups, and opening research centers in the U.S. to tap American talent. While the tariffs might compel China to improve its domestic treatment of American firms, they leave most of China's practices unaffected. Limitations on Chinese investment in the U.S. — if carefully scoped and adaptable to Beijing’s evolving toolkit — would do more.
Read the full op-ed on Axios.
More from CNAS
-
Global Swing States and the New Great Power Competition
Commentary
The United States should prioritize these six countries in their foreign policy, encouraging swing state governments to choose policies that reflect the core principles of int...
By Richard Fontaine & Gibbs McKinley
-
The Pentagon’s AUKUS Review is an Opportunity — If Done Right
Commentary
The reality is that U.S. military assistance to Ukraine and Taiwan has starkly highlighted for policymakers the real limits of the U.S. industrial base to meet demand across a...
By Jennifer Hendrixson White
-
Video
Indo-Pacific Security / Energy, Economics & Security
75 Years Post-Korean War: Can Trust Be Rebuilt Under the New Administration?As President Lee Jae Myung begins his term, he's taking visible steps to reset the tone with North Korea: halting propaganda broadcasts and reemphasizing past military agreeme...
By Dr. Go Myong-Hyun
-
Reports
Indo-Pacific Security / Technology & National Security
Cyber Crossroads in the Indo-PacificThe Indo-Pacific faces a cyber crossroads. Down one path lies deeper military, intelligence, and economic ties between Washington and its key allies and partners in this strat...
By Vivek Chilukuri, Lisa Curtis, Janet Egan, Morgan Peirce, Elizabeth Whatcott & Nathaniel Schochet
