Huawei's bid failure points to tougher trade strategy
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Why does the US reject investment from Chinese enterprises even when its unemployment rate stays high? The answer is easy: China is a typical country with a real economy, while US has a virtual one. In this case, the US government has to firstly guarantee its own national debts to be sold abroad, and ban them from returning home in any form.
That is why the US government turns down the investment plan in the name of national security when Chinese enterprises try to pay for US material properties with dollars.
As a result, Chinese government should urge US government to make more efforts to open US markets. If the US government goes its own way and keeps blocking Chinese enterprises, the Chinese government should consider reducing its holdings of US dollar debt.
Meanwhile, the Chinese government could decide whether to approve or decline American enterprises' investment projects in China.
At least they could warn the US government not just to attend to its own benefits when dealing with bilateral trade issues. It now seems that Chinese government should exert more of its own power to tackle the issue of protectionism.
The trade normalization between China and the US is a long and tough progress. At present, the US government is being faced with unprecedented debt crises, and if China doesn't fully and clearly declare its stance to help Chinese enterprises release US dollar holdings, then what Chinese enterprises lose might be far more than what US government suffers.
The US is now taking its own practical actions to build new trade standards. Chinese government should adapt to changing circumstances and take relevant actions against US enterprises in accordance with the standards the US has set.
The author is director of the Social Development Research Center at Wuhan-based Zhongnan University of Economics and Law. forum@globaltimes.com.cn
