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The AI arms race: the tech fear behind Donald Trump’s trade war with China | Financial Times
Shawn Donnan in Washington YESTERDAY

While the headlines about the Trump administration’s trade war with Beijing often focus on raw materials such as steel, aluminium and soyabeans, the underlying motivation of the new protectionist mood is American anxiety about China’s rapidly growing technological prowess.......
At a time when the US is engaged in a battle for technological pre-eminence with China, the ZGC project is exactly the sort of state-backed Chinese investment that American politicians across the political spectrum view with scepticism.

“China has targeted America’s industries of the future, and President Donald Trump understands better than anyone that if China successfully captures these emerging industries, America will have no economic future,” .....US tariffs on $34bn in imports from China that are due to take effect on Friday as part of a squeeze intended to end what the US says has been years of state-endorsed Chinese intellectual property theft. But it is also part of a broader battle against what the White House has labelled China’s “economic aggression”......Viewed from America, President Xi Jinping’s Made in China 2025 industrial strategy is a state-led effort to establish Chinese leadership in the technologies of the next generation of commerce and military equipment — notably AI, robotics and gene editing.

Many US officials are now questioning one of the basic assumptions about how the American economy operates: its openness to foreign investment....While some technology executives extol the potential for co-operation in areas such as AI, the Washington establishment increasingly sees them as central to a growing geopolitical competition....Many Chinese investors are looking for US companies that they can help move into China. .....Even though Mr Trump’s focus on Chinese technology has strong bipartisan support in Washington, its tactics have been heavily criticised. The biggest blunder, many critics argue, has been the Trump administration’s willingness to wage concurrent trade wars. The IP-driven tariffs push against China has been accompanied by one that has hit allies such as Canada and the EU that might have joined a fight against Beijing.

........“We’re treating the Chinese better than we are treating our friends,” says Derek Scissors, a China expert at the conservative American Enterprise Institute, who sees the tariffs Mr Trump is threatening against European car imports as a similar bit of malpractice.
arms_race  artificial_intelligence  China  CFIUS  Donald_Trump  economic_warfare  economic_aggression  FDI  geopolitics  international_trade  investors  investing  intellectual_property  industrial_policies  protectionism  politicians  robotics  One_Belt_One_Road  security_&_intelligence  Silicon_Valley  SOEs  start_ups  theft  U.S.  venture_capital  Washington_D.C. 
july 2018 by jerryking
The murky world of Chinese influence - The Globe and Mail
CHARLES BURTON
Special to The Globe and Mail
Published Wednesday, Jun. 17, 2015

Indeed, it’s worth noting that Canadian officials and politicians who favour closer economic relations with China – playing down concerns about human rights, espionage, unfair trade practices, support for repressive Third World regimes and so on – have generally not been of Chinese origin. It’s troubling that many of these same people, after they leave politics, end up making serious money in China-related trade or lucrative China-related board of directors’ appointments. This most recently applies to Mr. Baird himself and very much so to his predecessor David Emerson, but also to former prime ministers, former Canadian ambassadors to China and many others, of all political stripes. Chinese money is seemingly welcomed almost everywhere in Canada, but it inevitably comes with strings attached: expectations of reciprocal “friendship” that lead back to the Chinese Communists and their ever-more influential global business conglomerates headquartered in Beijing.

This is not a reciprocal relationship. It is unlikely that there are many telephone calls going on between any of our consuls-general in China and influential Chinese political actors comparable in rank to our Michael Chan.

Canada could be managing these concerns much better. The Chinese money is there, but not the Canadian political will.
Canada  Canada-China_relations  Charles_Burton  China  Chinese  CSIS  influence  influence_campaigns  influence_peddling  intimidation  lobbying  political_power  political_will  politicians  naivete  revolving_door  security_&_intelligence  SOEs 
june 2015 by jerryking
In High Seas, China Moves Unilaterally - NYTimes.com
By JANE PERLEZ and KEITH BRADSHERMAY 9, 2014

Vietnam has proved to be a tougher adversary, sending out its own ships to meet the Chinese flotilla and, according to Chinese government reports, using them to ram Chinese ships as many as 171 times in four days.

A prominent Vietnamese political analyst, Nguyen Quang A, summarized the standoff this way: “Invasion is in their blood, and resistance is in our blood.”

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The timing of the move was perceived by some in the region as a test not only of the ability of Southeast Asian nations to stand up to their far more powerful northern neighbor, but also of President Obama’s resolve less than a month after he promised to support American allies in Asia as they deal with a stronger China.

China’s action was almost certainly a long-term plan — the deployment of a deep water drilling rig takes months of preparation.
adversaries  China  China_rising  CNOC  maritime  oil_industry  Vietnam  SOEs  South_China_Sea 
may 2014 by jerryking
Venezuela’s declining fortunes a lesson in mismanagement - The Globe and Mail
GWYN MORGAN
Special to The Globe and Mail
Published Sunday, Feb. 23 2014

The fact that Canadian oil production, which faces much greater technical challenges than in Venezuela, has grown steadily over the same period offers some fundamental lessons.

The first is that building a business requires reinvestment. Siphoning off cash to shareholders or governments stymies growth. The second lesson is that skilled people are always in demand, either in another company or another country. Without them, the only direction is down.

The third lesson is that, sooner or later, state-owned enterprises will be doomed by cronyism and dysfunction. The idea that it is up to government to set the rules, and business to hit the ball, separates free-market capitalism from command-and-control socialism. Which leads to a key lesson for those who cling to socialist philosophies: Distributing wealth, before creating it, impoverishes everyone. Only free-enterprise countries have managed to build strong and prosperous societies.
command-and-control  free-enterprise  Gwyn_Morgan  reinvestment  socialism  Venezuela  PDVSA  oil_industry  mismanagement  SOEs  human_capital  cronyism  dysfunction  decline 
may 2014 by jerryking
Why some see big potential in tiny farms - The Globe and Mail
Doug Saunders

Oxford, England — The Globe and Mail

Published Saturday, Apr. 12 2014,

TechnoServe, a long-established Washington-based non-profit whose 1,400 employees provide technical assistance to small developing-world farmers....Those small farmers don’t produce much food in part because they can’t afford to buy decent seeds and fertilizer. They can’t afford seeds or fertilizer because they can’t borrow money based on their future crop sales. And, Mr. Masha notes, that’s because lending them money can be so expensive: Interest rates on tiny loans are already, by definition, very high; add to that the cost of servicing loans across regions, and the considerable cost of hedging those loans against volatile developing-world currencies, and, he says, “you’ve priced them right out of the credit market.”

Banks and micro-credit agencies are also reluctant to lend because small farmers often have no collateral: Property ownership is ambiguous and few countries have small-claims courts to deal with defaults. (Brazil, an exception, owes a lot of its development success to the creation of such institutions.)

While the potential in these farms is huge, few want to take the risk of building agricultural supply and value chains in the developing world. Such investments take many years to generate returns, which tend to be very modest – rendering them uninteresting to corporations and venture capitalists, but increasingly appealing to Chinese state enterprises and a few people with local knowledge.
smallholders  farming  agriculture  size  scaling  Doug_Saunders  TechnoServe  poverty  tacit_data  supply_chains  value_chains  fertilizers  seeds  SOEs  China  interest_rates  microfinance  microlending  property_ownership  developing_countries  institutions 
april 2014 by jerryking
State Companies Emerge as Winners Following Top China Meeting - WSJ.com
By
Bob Davis And
Brian Spegele

Updated Nov. 14, 2013
"SOE reform is a crucial barometer of whether there is true reform," said Fred Hu, chairman of Primavera Capital, a private-equity firm in Beijing, who was involved in the initial public offerings of some of China's largest state-owned banks.

Officials and academics who worked on the plan discussed at the plenum said state-owned companies are so adept at blocking change that Beijing is looking to an old playbook to slowly reduce their influence: enlist foreign help. China has agreed to negotiate investment treaties with the U.S. and European Union, which would open closed sectors to outside competition, including those dominated by state-owned firms.

In exchange, China wouldensure that state-owned firms had greater access to U.S. and European markets, where they would be forced to sharpen their competitive edge.

That is a strategy similar to one pursued by former Premier Zhu Rongji, who used China's negotiations to enter the World Trade Organization to make changes domestically.
China  SOEs  reform  free_markets  playbooks 
november 2013 by jerryking
Principles, not mere pragmatism, should drive the Nexen decision - The Globe and Mail
Preston Manning

Special to The Globe and Mail

Published Thursday, Nov. 22 2012
Preston_Manning  Nexen  CNOOC  SOEs  China 
december 2012 by jerryking
Canada’s hazy takeover rules hurt everyone
Oct. 28 2012 | The Globe and Mail |Barrie McKenna.

Following an upsurge of national angst triggered by the buyouts of Canadian resource giants Inco, Falconbridge Ltd. and Rio Tinto Alcan in 2006, Ottawa ordered up the exhaustive “Compete to Win” report. The result was the 2008 federal Competition Policy Review Panel headed by former BCE Inc. chairman Lynton (Red) Wilson, which urged the government to turn the investment review process on its head.

The Wilson panel anticipated the growing clout of state-owned investors as well as the commodities super cycle.

Mr. Wilson’s prescription was to scrap the “net benefit to Canada” test and replace it with a “national interest” benchmark used by countries such as Australia. He urged Ottawa to reverse the burden of proof on takeovers, making it the responsibility of the government to demonstrate why a deal is bad for the country, not the other way around. And the panel said the government should publicly explain the rationale for blocking or approving transactions, scrapping a regime that “does not meet contemporary standards for transparency.”...The absence of investment reciprocity or evidence that state-owned actors won’t behave like other companies both would qualify as possible reasons for saying no.
Barrie_McKenna  barriers_to_entry  burden_of_proof  commodities_supercycle  competition_policy  FDI  M&A  mergers_&_acquisitions  national_interests  rules_of_the_game  say_"no"  SOEs  transparency 
november 2012 by jerryking
Tackling the Many Dangers of China's State Capitalism - WSJ.com
September 27, 2012, 8:20 p.m. ET

Tackling the Many Dangers of China's State Capitalism

By JOHN BUSSEY
China  SOEs 
october 2012 by jerryking
China Squeezes Foreigners for Share of Global Riches - WSJ.com
DECEMBER 29, 2010 | WSJ | By SHAI OSTER, NORIHIKO SHIROUZU
And PAUL GLADER. China's big government-backed companies now have
enormous financial resources and growing political clout, making them
attractive partners outside China. In addition, the Chinese market has
become so important to the success of multinational companies that
Beijing has the ability to drive harder bargains.

But such deals also carry risk. Several earlier joint ventures inside
China have soured over concerns that Chinese partners, after gaining
access to Western technology and know-how, have gone on to become potent
new rivals to their partners.
Beijing  China  deception  economic_clout  GE  joint_ventures  multinationals  political_clout  predatory_practices  rivalries  SOEs 
december 2010 by jerryking
China's 'State Capitalism' Sparks a Global Backlash - WSJ.com
NOVEMBER 16, 2010/WSJ/ By JASON DEAN, ANDREW BROWNE And SHAI
OSTER. Bedeviling U.S.-China relations is a deep issue: China's national
economic strategy is detailed and multifaceted, and it is challenging
the U.S. and other powers on a number of fronts. Central to China's
approach are policies that champion SOEs, seek aggressively to obtain
advanced technology, and manage its exchange rate to benefit exporters.
It leverages state control of the financial sys. to channel low-cost
capital to domestic industries—and to resource-rich foreign nations
whose oil and minerals China needs to maintain rapid growth. ...Charlene
Barshefsky, Clinton's U.S.T.R.. says the rise of powerful state-led
economies like China & Russia is undermining the established
post-World War II trading system...the Chinese state is again ascendant.
...The govt. owns almost all major banks in China, its three major oil
companies, its three telecom carriers and its major media firms.
backlash  China  China_rising  industrial_policies  international_system  mercantilism  multifaceted  protectionism  post-WWII  SOEs  state-as-facilitator  state_capitalism  U.S.-China_relations 
november 2010 by jerryking
Business Books: Why Russia and China will eat your lunch
May 28, 2010 | Reuters | by Herbert Lash. The Western
multinationals that have dominated global trade for decades are going to
have their lunch eaten in China and elsewhere, and many are unaware
it's about to happen. That's the warning in "The End of the Free
Market" (Portfolio, $26.95), a new book by political risk expert Ian
Bremmer. Bremmer, known for showing the effect of political turmoil on
financial markets, argues that China, Russia and other emerging markets
have developed a new economic model -- state capitalism -- that clashes
with the free-market system of the West.
book_reviews  China  Russia  multinationals  free_markets  state_capitalism  SOEs  Ian_Bremmer 
may 2010 by jerryking
FT.com / Comment / Analysis - A new Asian invasion
June 24 2005 | Financial Times | By Dan Roberts, Richard
McGregor and Stephanie Kirchgaessner. "China’s strategic desire for
control of natural resources, global brands and a short cut to
international markets, combined with unprecedented access to cheap money
from the country’s state-owned banks, therefore means its companies can
afford to are ready to outbid more traditional trade purchasers and
private equity groups."
FDI  China  U.S.  industrial_policies  mercantilism  SOEs  natural_resources  brands  mergers_&_acquisitions  Asian  shortcuts  commodities  commodities_supercycle 
april 2010 by jerryking
China Toughens Rules for Foreign Companies - WSJ.com
MARCH 17, 2010 | Wall Street Journal | by ANDREW BROWNE And
JASON DEAN. Business Sours on China. Foreign Executives Say Beijing
Creates Fresh Barriers; Broadsides, Patent Rules. China's relationship
with foreign companies is starting to sour, as tougher government
policies and intensifying domestic competition combine to make one of
the world's most important markets less friendly to
multinationals....Signs of nationalism are evident in the grooming of
state-owned companies (SOEs) to dominate their industries as "national
champions," often at the expense of private Chinese companies as well as
foreign firms. From airlines to coal mining to dairy products,
government policies are expanding the state's role.
China  protectionism  multinationals  patent_law  economic_nationalism  SOEs  global_champions  state-as-facilitator 
march 2010 by jerryking

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