Despite China's Widespread Trade Cheating, Joe Biden Is Picking Up Where He Left Off In Office By Embracing A Dovish Approach To China

The Facts:

DESPITE CHINA'S WIDESPREAD TRADE CHEATING DURING JOE BIDEN'S TIME AS VICE PRESIDENT, HE HAS EMBRACED A DOVISH APPROACH TO CHINA ON THE CAMPAIGN TRAIL

On the campaign trail, Joe Biden has dismissed the notion that the U.S. should be worried about China multiple times saying "They're not competition for us," and joking "China is going to eat our lunch? Come on, man?"

While Joe Biden was Vice President, the Obama Administration's trade representative continually highlighted China's trade-distorting policy and said the future of trade was a choice between the U.S. or China .

BIDEN'S DOVISH APPOACH ON THE CAMPAIGN TRAIL IS IN STEP WITH HIS TIME IN OFFICE WHEN HE CONSISTENTLY OPPOSED CRACKING DOWN ON THE COUNTRY

Biden voted against revoking China's most-favored-nation status and has argued for permanent normal trade relations with the country.

In 2007, despite his tough rhetoric that he would take countries "to the mat" on trade, Biden opposed the idea of applying tariffs on China.

Biden was the Obama Administration's " leading pitchman " for TPP, which would have allowed China to "reap benefits" from trade " without having to abide by any of [TPP] terms ."

IT IS WIDELY AGREED THAT CHINA IS CHEATING ON TRADE AND A THREAT TO U.S. ECONOMIC AND NATIONAL SECURITY INTERESTS

The Director of National Intelligence testified in 2019 of the efforts the Chinese are undertaking to "diminish U.S. influence."

China has engaged in a variety of unfair trade practices towards the United States including widespread IP theft , rampant trademark theft and fraud , erecting significant trade barriers to foreign companies , raising barriers to the free flow of data.

DESPITE CHINA'S WIDESPREAD TRADE CHEATING DURING JOE BIDEN'S TIME AS VICE PRESIDENT, HE HAS EMBRACED A DOVISH APPROACH TO CHINA ON THE CAMPAIGN TRAIL

Despite The Threats Posed By China, Former Vice President Joe Biden Has Embraced A Dovish Approach To China, Stressing On Multiple Occasions That The Country Is No "Competition" For The United States

At A Campaign Rally This May, Vice President Joe Biden Dismissed The Notion That The U.S. Should Be Worried About China As A Geopolitical Competitor. "Former vice president Joe Biden on Wednesday dismissed the notion that the United States should be worried about China as a geopolitical competitor, prompting criticism from some congressional Republicans who argued that Biden is underestimating the world's second-largest economy." ( The Washington Post , 05/01/19)

Biden Downplayed The Threat Of China, Saying "They're Not Competition For US." "'They can't figure out how they're going to deal with the corruption that exists within the system,' Biden said of China. 'I mean, you know, they're not bad folks, folks. But guess what? They're not competition for us.'" ( The Washington Post , 05/01/19)

Biden Joked With Attendees About The Idea That China Could "Eat Our Lunch," Saying "Come On, Man." "'China is going to eat our lunch? Come on, man,' said Biden, who last week announced his bid for the 2020 Democratic presidential nomination." ( The Washington Post , 05/01/19)

Biden Has Said These Remarks On Multiple Occasions Including At A March Fundraiser In Delaware Where He Once Again Said He Doubted China's Ability To "Eat Our Lunch." "I hear these stories about how china is going to eat our lunch, give me a break." ( C-SPAN , 3/16/19)

While Joe Biden Was Vice President, The Obama Administration's Trade Representative Continually Highlighted China's Trade-Distorting Policy And Said The Future Of Trade Was Between The U.S. Or China

In 2009, Obama's Trade Representative Reported That "Significant Questions Have Arisen Regarding China's Adherence To Ongoing WTO Obligations, Including Core WTO Principles." "Nevertheless, as this year's report again confirms, in some areas it appears that China has yet to fully implement important commitments, and in other areas, significant questions have arisen regarding China's adherence to ongoing WTO obligations, including core WTO principles." ("2009 Report To Congress On China's WTO Compliance," The United States Trade Representative , 12/2009, p. 4)

Obama's USTR In 2010: Major Issues With China's Trade Practices Include "Serious Problems With Intellectual Property Rights Enforcement…As Well As Continued Market Access Barriers And Discrimination Against Foreign Enterprises In Many Sectors Of China's Economy." "Major issues included China's indigenous innovation policies, serious problems with intellectual property rights enforcement, and China's slow movement toward accession to the WTO Government Procurement Agreement, as well as continued market access barriers and discrimination against foreign enterprises in many sectors of China's economy." ("2010 Report To Congress On China's WTO Compliance," The United States Trade Representative , 12/2010, p. 2)

Obama's USTR In 2011: China's Interventionist Policies "Coupled With The Large Role Of State Owned Enterprises In China's Economy," Continue To "Generate Concerns Among U.S. Stakeholders About The Direction Of China's Reform." "In 2011, the prevalence of interventionist policies and practices, coupled with the large role of state owned enterprises in China's economy, continued to generate significant concerns among U.S. stakeholders." ("2011 Report To Congress On China's WTO Compliance," The United States Trade Representative , 12/2011, p. 2)

Obama's USTR In 2015: Significant Trade Distortions Have Been Generated By "The Chinese Government's Interventionist Policies And Practices And The Large Role Of State-Owned Enterprises And Other National Champions In China's Economy." "Many of the problems that arise in the U.S.-China trade and investment relationship can be traced to the Chinese government's interventionist policies and practices and the large role of state-owned enterprises and other national champions in China's economy, which continue to generate significant trade distortions that inevitably give rise to trade frictions." ("2015 Report To Congress On China's WTO Compliance," The United States Trade Representative , 12/2015, p. 2)

USTR 2016: Significant Trade Distortions Which Have Led To Trade Frictions Are Being Generated By "The Chinese Government's Interventionist Policies And Practices And The Large Role Of State-Owned Enterprises And Other National Champions In China's Economy." "Many of the problems that arise in the U.S.-China trade and investment relationship can be traced to the Chinese government's interventionist policies and practices and the large role of state-owned enterprises and other national champions in China's economy, which continue to generate significant trade distortions that inevitably give rise to trade frictions." ("2016 Report To Congress On China's WTO Compliance," The United States Trade Representative , 12/2016, p. 2)

Upon Leaving Office, Obama's USTR, Michael Froman, Implied The Future Of Trade Had A Choice Between The U.S. Or China. "The Choice: The U.S. or China. If the United States steps back from engagement with the global economy, other countries will step in to take our place." (Ambassador Michael Froman, "Trade, Growth, And Jobs: U.S. Trade Policy In The Obama Administration," The United States Trade Representative , 1/1/17, p. 7)

Froman Said The U.S. System Was An Open, Rules-Based System That The United States Helped Create. "Right now, there are competing visions for how the global economy should work. The choice is between the open, rules-based system that the United States helped create..." (Ambassador Michael Froman, "Trade, Growth, And Jobs: U.S. Trade Policy In The Obama Administration," The United States Trade Representative , 1/1/17, p. 7)

"Right now, there are competing visions for how the global economy should work. The choice is between the open, rules-based system that the United States helped create..." (Ambassador Michael Froman, "Trade, Growth, And Jobs: U.S. Trade Policy In The Obama Administration," The United States Trade Representative , 1/1/17, p. 7) Froman Said The China Trade System Was One With "No Labor Or Environmental Protections, No Emphasis On Intellectual Property Rights Enforcement, No Disciplines On State-Owned Enterprises, No Commitment To A Free And Open Internet, And No Discipline On Currency Manipulation." "Right now, there are competing visions for how the global economy should work. The choice is between the open, rules-based system that the United States helped create, and a more mercantilist approach - one in which there are no labor or environmental protections, no emphasis on intellectual property rights enforcement, no disciplines on state-owned enterprises, no commitment to a free and open Internet, and no disciplines on currency manipulation." (Ambassador Michael Froman, "Trade, Growth, And Jobs: U.S. Trade Policy In The Obama Administration," The United States Trade Representative , 1/1/17, p. 7)

"Right now, there are competing visions for how the global economy should work. The choice is between the open, rules-based system that the United States helped create, and a more mercantilist approach - one in which there are no labor or environmental protections, no emphasis on intellectual property rights enforcement, no disciplines on state-owned enterprises, no commitment to a free and open Internet, and no disciplines on currency manipulation." (Ambassador Michael Froman, "Trade, Growth, And Jobs: U.S. Trade Policy In The Obama Administration," The United States Trade Representative , 1/1/17, p. 7) Froman : A Trade Partnership Led By China Would "Not Protect Labor And The Environment, Would Not Ensure Internet Freedom, Would Not Protect Patents Or Trademarks Or Copyright From Infringement, Counterfeiting, And Piracy, And Would Impose No Disciplines On State-Owned Enterprises." "For example, China is working to conclude the Regional Comprehensive Economic Partnership Agreement, a 16-country accord that would not protect labor and the environment, would not ensure Internet freedom, would not protect patents or trademarks or copyright from infringement, counterfeiting, and piracy, and would impose no disciplines on state-owned enterprises." (Ambassador Michael Froman, "Trade, Growth, And Jobs: U.S. Trade Policy In The Obama Administration," The United States Trade Representative , 1/1/17, p. 8)

DESPITE CHINA'S TRADE CHEATING, BIDEN HAS CONSISTENTLY OPPOSED CRACKING DOWN ON THE COUNTRY

Biden Voted Against Revoking China's Most-Favored-Nation Status And Has Argued For Permanent Normal Trade Relations With The Country

In 1997, Biden Voted Against An "Amendment To Express The Sense Of The Senate That China's Most-Favored-Nation Trade Status Should Be Revoked." "Hutchinson, R-Ark., amendment to express the sense of the Senate that China's most-favored-nation trade status should be revoked." (S. 955, CQ Vote #184: Rejected 22-77: R 16-38; D 6-39, 7/17/97, Biden Voted Nay)

In 2000, Biden Voted To Support Permanent Normal Trade Relations With China. "Passage of the bill that would make normal trade relations with the People's Republic of China permanent. The bill contains a measure that would protect U.S. businesses and workers from Chinese import surges. The bill includes a provision that would establish a commission to monitor human rights, labor standards and religious freedom in China. The administration would have to report annually on China's compliance with trade agreements and express the sense of Congress that Taiwan should be admitted to the World Trade Organization. The measure would authorize $99 million for Radio Free Asia and the Voice of America to expand broadcasts to China and neighboring countries." (H.R. 4444, CQ Vote #251: Passed 83-15: R 46-8; D 37-7, 9/19/00, Biden Voted Yea)

Biden Supported "Granting China" Permanent National Trade Relations, Despite The Process Having "No Guarantees" That China Would Act Responsibly On Trade. "Granting China PNTR and bringing China into the global trading regime continues a process of careful engagement designed to encourage China's development as a productive, responsible member of the world community. It is a process which has no guarantees, but which is far superior to the alternatives available to us." (Sen. Joe Biden, Congressional Record, S. 8714, 9/19/00)

In 2000, Biden Voted Against Human Rights Standards And Enforcement Prior To The Implementation Of Permanent Normal Trade Relations With China. "Helms, R-N.C., amendment that would delay the effective date of permanent normal trade relations status to China until the president certifies that China has ratified the International Covenant on Civil and Political Rights; begun dismantling its system of re-education through labor; opened up Tibet and Xinjiang to regular, unhindered access by humanitarian agencies; reviewed the sentences of people incarcerated as counterrevolutionaries; agreed to establish a high-level continuing dialogue with the United States on religious freedom; agreed to permit the U.S. Commission on International Religious Freedom and international human rights organizations unhindered access to religious leaders; responded to inquiries regarding people imprisoned, detained or under house arrest for religious reasons or for union organizing; and intends to release prisoners incarcerated because of religious reasons or for organizing trade unions." (H.R. 4444, CQ Vote #239: Rejected 32-63: R 19-33; D 13-30, 9/12/00, Biden Voted Nay)

Biden Voted Against Labor Standards In Permanent Normal Trade Relations With China. "Wellstone, D-Minn., amendment that would delay permanent normal trade relations status for China until China has provided a detailed response to inquiries regarding the number of persons who are imprisoned, detained, or under house arrest for organizing unions, as well as made substantial progress in releasing prisoners incarcerated for organizing independent trade unions." (H.R. 4444, CQ Vote #246: Rejected 22-74: R 9-44; D 13-30, 9/13/00, Biden Voted Nay)

Biden Voted Against Environmental Standards In Permanent Normal Trade Relations With China. "Smith, R-N.H., amendment that would require the Congressional-Executive Commission to monitor and encourage the cooperation of China in the implementation and enforcement of laws for the protection of human health and the environment that are at least as comprehensive and effective as comparable U.S. laws, and the allocation of sufficient resources to achieve measurable progress on a permanent basis in the protection of human health and the environment." (H.R. 4444, CQ Vote #246: Rejected 22-74: R 9-44; D 13-30, 9/13/00, Biden Voted Nay)

In 2007, Despite Claiming That He Was Willing To Take Countries "To The Mat" On Trade, Biden Opposed The Idea Of Applying Tariffs On China

On The Campaign Trail, Biden Claimed That He Was "Willing To Take The Prime Minister Of Canada And The President Of Mexico To The Mat" To Amend NAFTA. BIDEN: "Hey, look, a president's job is to create jobs, not to export jobs, and the idea that we are not willing to take the prime minister of Canada and the president of Mexico to the mat to make this agreement work is just a lack of presidential leadership. I would lead, I would do that, I would change it." (Sen. Joe Biden, MSNBC Democrat Presidential Debate, Chicago, IL, 8/7/07)

But Biden Opposed Tariffs Against China, Saying "No, I'm Not Willing To Go There." NPR's Michelle Norris: "Senator Biden, how would - would you actually restrict trade with China? And given the WTO guidelines, could you actually do that? … Now, this listener called for tariffs. Are you willing to go there?" Biden: "I'm not. No, I'm not willing to go there. You don't need to start a tariff war." (Sen. Joe Biden, NPR Democrat Presidential Debate, Des Moines, IA, 12/4/07)

As Vice President, Biden Was The Obama Administration's "Leading Pitchman" For TPP, Which Would Have Allowed China To "Reap Benefits" From Trade "Without Having To Abide By Any Of [TPP] Terms"

Vice President Biden Was The "Leading Pitchman" For The Trans-Pacific Partnership. " Democratic critics of President Obama's trade agenda got a playful warning from Joe Biden on Thursday, when the vice president announced that he'll be the administration's leading pitchman for the Trans-Pacific Partnership (TPP)." ( The Hill , 1/28/16)

In A 2013 Speech, Biden Said, "The Trans-Pacific Partnership Is Perhaps The Most Ambitious Trade Negotiation Underway In The World." "The trans-pacific partnership is perhaps the most ambitious trade negotiation underway in the world." ( C-SPAN , 4/5/13)

In September 2016, Biden Said The "Only Real Shot" To Pass TPP Would Be In The Lame Duck Session Following The 2016 Election, Despite Both Candidates Opposing The Agreement. "HAASS: You recently wrote in Foreign Affairs magazine-just to choose a random publication-that-(laughter)-that the Trans-Pacific Partnership-TPP-is as much about geopolitics as economics, and there we agree 100 percent. So my question is can there be a rebalance towards Asia without TPP, and given that both Donald Trump and Hillary Clinton oppose TPP, can there be TPP? BIDEN: Answer the second question first. As my grandfather would say, with the grace of God, the goodwill of the neighbors, and the crick not rising, we got a shot in this period-lame-duck period. That's our only real shot here. I'm not overpromising, but sometimes when there is no election to face and people are leaving and others who are staying they may see the wisdom of TPP, number one." ( Council on Foreign Relations , 9/21/16)

According To The Left-Leaning Intercept: "TPP Does Indeed Allow China And Other Non-Members To Reap Benefits From The Deal Without Having To Abide By Any Of Its Terms." "Donald Trump lambasted the Trans-Pacific Partnership at Tuesday night's Republican presidential debate, contending that China would use it to 'take advantage of everyone' - generating snickers from journalists and a withering refutation from Rand Paul, who said 'we might want to point out that China is not part of this deal.' But Trump never suggested that China was part of the TPP, only that the country would 'come in, as they always do, through the back door' of the agreement. And he was right. The TPP does indeed allow China and other non-members to reap benefits from the deal without having to abide by any of its terms." ( The Intercept , 11/11/15)

"China Can Get Their Goods To The U.S. And Other Countries Through The Back Door, In A Number Of Ways, And Take Advantage Of TPP Without Being Part Of The Agreement." "So China would not have to raise any standards or comply with any TPP rules, yet still be able to produce millions of auto parts and textiles for TPP countries at a lower cost, without the burden of tariffs. 'This will undoubtedly hurt the competitiveness of American manufacturers, particularly the American auto industry,' said Rep. Dan Kildee (D-Michl.), an opponent of TPP. While Trump's bluster certainly could be mistaken for ignorance about TPP, in this case he's right: China can get their goods to the U.S. and other countries through the back door, in a number of ways, and take advantage of TPP without being part of the agreement. Our trade deficit with China, which for the first 9 months of the year stood at $273 billion, would likely not appreciably change after the agreement, despite the additional trading partners." ( The Intercept , 11/11/15)

IT IS WIDELY AGREED THAT CHINA IS CHEATING ON TRADE AND A THREAT TO U.S. ECONOMIC AND NATIONAL SECURITY INTERESTS

The Director Of National Intelligence Testified In 2019 Of The Efforts The Chinese Are Undertaking To "Diminish US Influence."

The Director Of National Intelligence Testified In 2019 That Threats To U.S. National Security Are Being Driven By Russia And China As They Seek To "Shape The International System" And "Exert Influence Over The Politics And Economies Of States In All Regions Of The World." "Threats to US national security will expand and diversify in the coming year, driven in part by China and Russia as they respectively compete more intensely with the United States and its traditional allies and partners. This competition cuts across all domains, involves a race for technological and military superiority, and is increasingly about values. Russia and China seek to shape the international system and regional security dynamics and exert influence over the politics and economies of states in all regions of the world and especially in their respective backyards." ( Director of National Intelligence , 01/29/19)

DNI: "China Presents A Persistent Cyber Espionage Threat And A Growing Attack Threat To Our Core Military And Critical Infrastructure Systems." "China presents a persistent cyber espionage threat and a growing attack threat to our core military and critical infrastructure systems. China remains the most active strategic competitor responsible for cyber espionage against the US Government, corporations, and allies. It is improving its cyber-attack capabilities and altering information online, shaping Chinese views and potentially the views of US citizens-an issue we discuss in greater detail in the Online Influence Operations and Election Interference section of this report." ( Director of National Intelligence , 01/29/19)

"China presents a persistent cyber espionage threat and a growing attack threat to our core military and critical infrastructure systems. China remains the most active strategic competitor responsible for cyber espionage against the US Government, corporations, and allies. It is improving its cyber-attack capabilities and altering information online, shaping Chinese views and potentially the views of US citizens-an issue we discuss in greater detail in the Online Influence Operations and Election Interference section of this report." ( Director of National Intelligence , 01/29/19) China Will Attempt To "Extend The Country's Global Economic, Political And Military Reach" And Use Its Military Capabilities And The Belt And Road Initiative To "Diminish US Influence." "We assess that China's leaders will try to extend the country's global economic, political, and military reach while using China's military capabilities and overseas infrastructure and energy investments under the Belt and Road Initiative to diminish US influence." ( Director of National Intelligence , 01/29/19)

U.S. Exporters Looking To Trade With China Face Discriminatory And Unfair Trade Practices Designed To Protect China's Domestic Industries

The USTR Has Found That China Has Implemented A Variety Of Industrial Policies That Seek To Limit Market Access For Imported Goods, Foreign Manufacturers And Foreign Services. "China continued to pursue a wide array of industrial policies in 2017 that seek to limit market access for imported goods, foreign manufacturers and foreign services suppliers, while offering substantial government guidance, resources and regulatory support to Chinese industries." ( The United States Trade Representative , 03/18, p. 91)

China's Made In 2025 State Plan Aims To Replace Foreign Technology, Products, And Services With Chinese Technology, Products And Services In The China Market "So As To Ready Chinese Companies For Dominating International Markets." "While ostensibly intended simply to raise industrial productivity through more advanced and flexible manufacturing techniques, Made in China 2025 is emblematic of China's evolving and increasingly sophisticated approach to 'indigenous innovation,' which is evident in numerous supporting and related industrial plans. Their common, overriding aim is to replace foreign technology, products and services with Chinese technology, products and services in the China market through any means possible so as to ready Chinese companies for dominating international markets." ( The United States Trade Representative , 03/18, p. 91)

As Of 2017, China Was The "Least Transparent And Predictable" Of The World's Major Markets For Agricultural Products Due In Part To "Capricious Practices" And "Uneven Enforcement Of Regulations And Selective Intervention" By Chinese Authorities. "Notwithstanding this success, China remains among the least transparent and predictable of the world's major markets for agricultural products, largely because of uneven enforcement of regulations and selective intervention in the market by China's regulatory authorities. Seemingly capricious practices by Chinese customs and quarantine agencies delay or halt shipments of agricultural products into China. Sanitary and phytosanitary (SPS) measures with questionable scientific bases or a generally opaque regulatory regime frequently have created difficulties and uncertainty for traders in agricultural commodities, who require as much certainty and transparency as possible." ( Office Of The United States Trade Representative , March 2017, pg. 91)

China Was Named The World's Principal Culprit Of Intellectual Property Theft In 2017

According To The Commission On The Theft Of American Intellectual Property, China Is The World's Principal IP Infringer, And Is "Deeply Committed" To Industrial Policies, Such As The "Acquisition Of Foreign Technology And Information" That Contribute To "Greater IP Theft." "China, whose industrial output now exceeds that of the United States, remains the world's principal IP infringer. China is deeply committed to industrial policies that include maximizing the acquisition of foreign technology and information, policies that have contributed to greater IP theft." ( The Commission On The Theft Of American Intellectual Property , 2/17, Pg. 1)

Actors Affiliated With The Chinese Government And Military Infiltrated The Computer Systems Of U.S. Companies And Stole Their Intellectual Property. "Most troubling are reports that actors affiliated with the Chinese government and the Chinese military have infiltrated the computer systems of U.S. companies, stealing terabytes of data, including the companies' intellectual property (IP), for the purpose of providing commercial advantages to Chinese enterprises." ( Office Of The United States Trade Representative , 3/17, Pg. 78)

In March 2017, The U.S. Trade Representative Called The Protection And Enforcement of Trade Secrets In China "A Serious Problem" And Noted That The Theft Of Trade Secrets For The Benefit Of Chinese Companies Has Occurred Within China And Outside China. "The protection and enforcement of trade secrets in China is a serious problem and has been the subject of high-profile attention and engagement in recent years. Thefts of trade secrets for the benefit of Chinese companies have occurred both within China and outside of China." ( Office Of The United States Trade Representative , 3/17, Pg. 78)

Chinese Actors Have Been Responsible For Rampant Trademark Theft And Fraud In The U.S.

In 2017: The USTR Reported That U.S. Companies Across Several Sectors Have Been Confronted By Chinese Applicants Registering Their Trademarks And "Holding Them For Ransom" Or Working To Build Businesses Off U.S. Companies' Global Reputation. "U.S. companies across industry sectors continue to face Chinese applicants registering their marks and 'holding them for ransom' or seeking to establish a business building off of U.S. companies' global reputations." ( Office Of The United States Trade Representative , 3/17, Pg. 78)

Thefts Of Trade Secrets For The Benefit Of Chinese Companies Have Occurred Both Inside And Outside China With "Impunity." "Thefts of trade secrets for the benefit of Chinese companies have occurred both within China and outside of China. Offenders in many cases continue to operate with impunity." ( Office Of The United States Trade Representative , 3/17, Pg. 78)

The Wall Street Journal : The Chinese Sports Company Uncle Martian Was "The Latest In A Line Of Chinese Companies Seeking To Capitalize On The Fame Of Foreign Counterparts." "A Chinese sports apparel company is dismissing allegations that its logo bears an uncanny resemblance to the one used by Baltimore-based Under Armour. Uncle Martian, as the brand is mystifyingly known, appears to be the latest in a long line of Chinese companies seeking to capitalize on the fame of their better-known foreign counterparts." ( The Wall Street Journal , 05/03/16)

Within China, Significant Trade Barriers Have Obstructed The Operations Of Foreign Pharmaceutical Companies

China Committed To Allowing Foreign Suppliers To Distribute Pharmaceuticals By December 2004 And Began Issuing Licenses In 2005. "China committed to allow foreign suppliers to distribute pharmaceuticals by December 11, 2004, and it began accepting applications from and issuing wholesale licenses to foreign pharmaceutical companies about six months after that deadline." ( United States Trade Representative , 1/18, Pg. 120)

USTR In 2017: Many Restrictions Continued "To Make It Difficult For Foreign Pharmaceutical Companies To Realize The Full Benefits Of China's Distribution Commitments." "Many other restrictions affecting the pharmaceuticals sector continue to make it difficult for foreign pharmaceutical companies to realize the full benefits of China's distribution commitments." ( United States Trade Representative , 1/18, Pg. 120)

USTR: China's System For Protecting Pharmaceutical Products "Either Remain Opaque Or Fall Short Of The Standards Prevailing In The United States And Other Jurisdictions." "China's patent examiners continue to deny applicants' requests to supplement their test data. Meanwhile, several other aspects of China's system for protecting pharmaceutical products either remain opaque or fall short of the standards prevailing in the United States and other jurisdictions. For example, the guidelines do not explicitly apply to both the sufficiency of disclosure and inventiveness." ( United States Trade Representative , 1/18, Pg. 111)

U.S. Auto Companies Hoping To Manufacture Within China To Avoid Tariffs Are Required By Chinese Law To Form Joint Ventures With Chinese Companies

U.S. Automakers Are Required By Law To Form Joint Ventures With Chinese Companies, And Those Companies Must Own 50% Or More Of The Venture. " When U.S. automakers like GM build in China, they are required by law to form joint ventures with Chinese companies. Those Chinese companies must own 50% or more of the venture." ( Axios , 05/19/17)

The United States Chamber Of Commerce Reported These Chinese Joint Venture Requirements And Foreign Equity Restrictions Block Opportunities For Foreign Auto Manufacturing Companies To Operate In The Chinese Market. "Current restrictions impact half of the priority industries in MIC 2025. Auto manufacturing, civil aviation, telecommunications, ship building, and railway equipment all have foreign equity restrictions or joint venture requirements. These restrictions either block opportunities for foreign companies to operate in the mark, or, in some cases, create a de facto technology transfer requirement to the Chinese partner as a pre-condition for market access." ( United States Chamber of Commerce , 03/16/17, p.25)

The Chamber Of Commerce Illustrated That The Use Of Joint Venture And Technology Transfer Requirements Are Particularly Onerous For Companies That Want To Enter The New Energy Vehicles Market. "New energy vehicles (NEV), a MIC 2025 priority industry, illustrates the Chinese government's use of joint venture and technology transfer requirements for foreign companies that wish to access the domestic Chinese NEV market. New regulations for NEVs appear to make these technology transfer requirements even more onerous. Previously, foreign companies were required to transfer only one of three core technologies to a joint venture. Now, new MIIT regulations require NEV manufactures (including joint ventures) to master the development and manufacturing technology for the complete NEV. Consequently, foreign companies may be forced to disclose and transfer additional technology to their joint venture in China so that IP is registered and belongs to the local entity." ( United States Chamber of Commerce , 03/16/17, p. 26)

Tesla CEO Elon Musk Compared The Obstacles Faced By The US Auto Industry In China To "Competing In An Olympic Race Wearing Lead Shoes." "Tesla Inc. Chief Executive Elon Musk took to Twitter on Thursday to call on U.S. President Donald Trump to challenge China's auto trade rules, which limit foreign ownership of Chinese ventures and impose steep tariffs on imported cars. In a series of tweets aimed at the president, Musk said he was 'against import duties in general, but the current rules make things very difficult. It's like competing in an Olympic race wearing lead shoes.'"( Reuters , 3/9/18)

China Has Raised Barriers To The Free Flow Of Data, Blocking U.S. Websites And Instead Promoting Domestic Competitors

In 2016 The Chinese Government Adopted A Law That Required Technology Products Supplied To The Chinese Government And Critical Industries To Be Reviewed By A Committee, Potentially Giving Local Companies A Competitive Edge. "The law, adopted late last year, sets up a committee to conduct security reviews of technology products supplied to the Chinese government and critical industries. Its requirements on matters such as technology disclosure and encryption could give local companies a competitive edge, the groups said in a letter reviewed by The Wall Street Journal." ( The Wall Street Journal , 5/15/17)

Though China's Internet Regulator Maintains That The Rules Are Nondiscriminatory But The Vague Working Could Hand Regulators "Broad Powers To Block A Technology Company's Products." "China's internet regulator couldn't be immediately reached for comment. In the past, it has maintained the rules are neutral and nondiscriminatory. Some of the law's provisions were softened after they drew criticism from western trade groups and governments. Wording requiring companies to submit 'source code' to prove their products are secure was removed in the final version of the law. Critics say the law's vague wording still hands Chinese regulators broad powers to block a technology company's products." ( The Wall Street Journal , 5/15/17)

A Report By The USTR Stated China Hoped To "Replace Foreign Information And Communications Technology Products And Services With Locally Produced Versions" By Imposing Cybersecurity Restrictions. "The report said China also is using a series of cybersecurity restrictions as part of an apparent long-term goal to replace foreign information and communications technology products and services with locally produced versions." ( CNBC , 3/31/18)

Bloomberg Has Reported That China Has Excluded Thousands Of U.S. Websites Domestically, Including Eight Of The Twenty-Five Most Trafficked Global Sites. " Last year, China excluded thousands of U.S. websites from China, including eight of the 25 most-trafficked global sites. Yet, so far at least, there's been hardly a word of protest out of Washington against these systematic denials of market access." (Adam Minter, "The Great Firewall Is A Trade Barrier," Bloomberg , 03/26/17)

This Protectionism Has Allowed For Domestic Companies To Flourish In The Absence Of Foreign Competition. "The Chinese government is doubtless aware of the opportunities that online protectionism creates for domestic companies. In June 2009, China blocked Twitter; two months later, Sina Corp. launched a wildly successful knock-off microblog, Weibo, that has thrived for years in the absence of foreign competition. Likewise, when Google announced in May 2010 that it was contemplating the total shutdown of its Chinese offices, the stock of Baidu Inc. -- its leading Chinese competitor and a keen observer and imitator of Google's business -- rallied 16.6 percent in a single day, while smaller rivals enjoyed similar bumps." (Adam Minter, "The Great Firewall Is A Trade Barrier," Bloomberg , 03/26/17)

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