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The U.S.-China Economic and Security Review Commission on Wednesday published its annual report that warned the White House about the expanding commercial ties between U.S. businesses and China and the risks those relationships bring.
“The U.S. businesses and investors must recognize that their participation in the Chinese economy is conditioned by the CCP’s policy priorities and subject to its control,” the commission, which was made up of security and economic experts, said, according to The Wall Street Journal.
The Trends Journal has reported on the Chinese effort to surpass the U.S. in every economic sector. (See “CHINA: HOLLYWOOD IS DEADWOOD,” “CHINA IS CHALLENGING U.S. HI-TECH DOMINANCE” and “BLACKROCK LAUNCHES WEALTH MANAGEMENT SERVICE IN CHINA.”)
The commission said that the trade imbalance between Washington and Beijing is widening again as well as investments from private U.S. businesses. In September a survey found that nearly 60 percent of U.S. companies operating in China increased their investments in the country, according to NPR.
“The tenor is optimism,” Jefferey Lehman, the chair of the board of governors of the American Chamber in Shanghai, said at the time. “People are hopeful that things will get better, but they are waiting to see.”
President Biden has vowed that Beijing will not overtake the U.S. in power during his presidency. (See “BIDEN RAMPS UP PRESSURE ON CHINA” and “U.S. LAUNCHES COLD WAR 2.0: CHINA LAMBASTS “COLD-WAR MENTALITY.”
The Journal ran a recent editorial about some of the pitfalls that companies may have while doing business with China, and pointed to a Marriott hotel in Prague that refused to host a conference on China’s treatment of the Uighur minority.
The international hotel chain apologized to the group and corporate said the decision to prevent the conference was inconsistent with its values that “welcome people from all around the world and from all walks of life.”
“Companies have to make their own decisions about doing business in China. But as they do they are learning that when they run afoul of Beijing, China demands abject surrender. Companies risk damage to their business in China if they don’t comply, but they also risk global damage to their brand and reputation if they do,” the paper said.
TREND FORECAST: We maintain our forecast that the 21st century will be China’s and America will not be able to defeat the communist nation militarily or economically. And, as we have noted, the bottom line of Big Business is the bottom line and they will do all they can to reap financial rewards with China building regardless of its domestic or foreign policy issues.
As we have detailed for decades, before U.S. and European nations moved their manufacturing to China to use cheap labor so they could mark up their prices when they sold their goods back home and around the world, China was a struggling nation.
Again, the business of China is business. The business of America is war. Indeed, we reported in this Trends Journal the record breaking U.S. military budget. (See “WAR MACHINE GETS RICHER AS AMERICANS GET POORER: HOUSE EASILY PASSES $768 BILLION DEFENSE BILL”)
Thus, while America builds its war machine, China builds its infrastructure and national economy.