The U.S. Firms at Risk From China Trade War: QuickTake Scorecard

 

U.S. companies need to prepare for greater tension between the Trump administration and China. U.S. Commerce Secretary Wilbur Ross opened high-level economic talks on July 19 by scolding China over its trade surplus. That doesn’t necessarily signal a trade war is imminent — the two countries have come through other rocky patches since Donald Trump became U.S. president. Still, Trump is weighing whether to restrict imports of Chinese steel and aluminum, a move that could prompt retaliation from President Xi Jinping. Such tit-for-tat actions could lead to a Chinese backlash against American businesses. The following are among those most at risk:

1. Hollywood

The movie studios want more access to China, where foreign releases accounted for 61 percent of box office sales in the first half of 2017. China allows about three dozen foreign films to be imported on a revenue-sharing basis — with the studio only getting 25 percent. Hollywood wants a higher number of imports and better revenue splits. Negotiations are ongoing and the U.S. could take China to the World Trade Organization if the two sides don’t reach an agreement by the start of 2018. Continue reading

The Cyber Threat: Government Debates Cyber Counterattacks as Chinese Attacks Continue Unabated

Recent talks with Chinese delegation achieve little progress

China’s aggressive cyber espionage and military reconnaissance operations against both U.S. government and private networks show no sign of abating under the Obama administration’s policy of holding talks and threatening but not taking punitive action.

Typical of the administration’s approach has been the seemingly endless series of high-level meetings with Chinese officials, such as talks held last week in Washington to discuss “norms” of behavior in cyberspace.

For at least the past five years, President Obama and the White House have ignored appeals from security and military officials, as well as from Congress and the private sector, to show greater resolve and take some type of action against the Chinese, lest the country’s technology wealth be drained empty. Continue reading

US technology may have been used to upgrade PLA submarine

A bilateral nuclear cooperation agreement was signed between the United States and China in 1985. Because the agreement is expected to expire by the end of this year, the Obama administration plans to make a new deal known as 123 agreement with China based on the Atomic Energy Act. It will help regulate the sharing of nuclear technology. During the hearing held on May 12 on the new agreement, Corker said that China is in violation of the current agreement as it provided a US nuclear reactor to Pakistan. Continue reading