subject: Us Media: Us Has Launched Verbal Offense Against China State-owned Enterprises [print this page] According to an article in the Journal in the United States published on February 3, the United States has launched offense against Chinese companies.
After the United States Congress has launched endless entanglement over the exchange rate of RMB, now on the trade battlefield, it is often heard that the United States offense finally arrived at fortress door of China.
Under the urging of business executives in the country, the United States trade officials have launched a concerted offense on the core of the commercial conflict in the United States. The core of this conflict is Chinese State-owned enterprises which are strictly protected and heavily subsidized. These enterprises have posed a heavy blow to the companies in the United States in competition not only in China but also all over the world.
United States has begun to put pressure on China. In aggressive speeches made in many places such as Geneva, Hong Kong, Beijing and other places, senior officials of the State Council Office of the United States, the trade representatives and other bodies have issued a warning. In Switzerland Davos, the United States Treasury Secretary Timothy Geithner said that China's state capitalism and its "subsidies and distorting" have been very harmful to its trade partners. President Obama had previously also expressed this view in his State of the Union. United States trade representatives in December last year to said to the Congress that the trade frictions with China could trace back to China's industrial policies, which were issued to prop up or protected domestic industries and State-owned enterprises in China in the way of the government action that may cause distortions to trade.
The Beijing government refused to accept this criticism. It said China only adopted the mode which had already been used in other countries to develop its own economy.
But China is different from other countries in that its State-owned enterprises are everywhere and are large. Large State-owned enterprises enjoy a sum of government subsidies and support such as in the aspect of financing, taxing, and preferential regulation. They play dominant role in China's "indigenous innovation". Evaluation Commission of the US-China Economy and Security, which is responsible to the Congress, said that this huge Empire accounted for about half of China's non-agricultural GDP. So, when the United States companies went to develop and compete with Chinese companies in China, they found that they were competing with the whole country. The government can easily approve or reject foreign investments of the foreign companies, or to ask newcomers to transfer technology to China before being admitted.
United States is launching a verbal attack on the gate of the Fort. But it's hard to say just by virtue of verbal Kung Fu, it can break any fortress.
