Trade Barriers

Since the meeting between PRC President Xi Jinping and President Donald Trump is a matter of concern these days, and the trade negotiations that are part of that meeting also are a matter of concern, herewith a concern of my own.

Maybe this is the right time for the two leaders to cut a deal to slash Chinese trade barriers.

The three biggest PRC trade barriers are these:

  • the PRC’s demand for government backdoors into American foundational software used by companies wanting to do business in the PRC
  • the PRC’s demand that American companies “partner” with PRC companies as a condition of doing business in the PRC
  • the PRC’s parallel demand that American companies transfer American technology to those “partners”

Absent removal of these barriers, no other barrier removal matters.  Absent removal of these barriers, no deal with the PRC should be concluded.

NATO and Mutual Defense Alliances

Secretary of State Rex Tillerson was in Europe at the end of the week, and among other things, he pushed for NATO member states to honor their decades-old commitment to spend 2% of their GDP on defense.

Germany, among other members, insisted that honoring their commitment was “unrealistic.”

German Foreign Minister Sigmar Gabriel said demands for 2% of GDP spending were “totally unrealistic.” He said that to meet the US target, Germany would have to increase spending by some €35 billion ($37 billion).

After all, Gabriel has argued,

…a strong defense isn’t enough to ensure security.

That’s a cynically offered straw man, though; no one is arguing that a strong defense is sufficient, only that it’s necessary.  Gabriel will have to play with his dolly without me.

There are others who agree that the nations need to boost their own spending—Germany’s Chancellor Angela Merkel, for instance, and NATO Secretary-General Jens Stoltenberg.  But it isn’t sufficient.

We need to be developing a mutual defense alliance that includes eastern European nations, anyway.  Maybe the result of that development should be a separate alliance, not an expansion of NATO.  Perhaps even the result should replace NATO, or at least our role in the new alliance should replace our role in NATO, since so many of the nations of NATO have so little interest in their own treaty responsibilities.

Distractions

Congressman Adam Schiff (D, CA), Ranking Member of the House Intelligence Committee, wants them.  He’s so anxious to have them that he’s insisting that Committee Chairman Devin Nunes (R, CA) to stop being Chairman.

Mr Nunes should step aside from any congressional investigation pertaining to Russia or to the “incidental” collection of intelligence information, like what Mr Nunes said occurred to Mr Trump’s transition team.

Mr Schiff said in a statement it was “not a recommendation I make lightly…. I believe the public cannot have the necessary confidence that matters involving the president’s campaign or transition team can be objectively investigated or overseen by the chairman.”

Never mind that his latest call was triggered by Nunes’ meeting with an official in a secure facility to review classified information regarding just that “incidental” collection against the Trump transition team by the Obama administration.

Never mind that Nunes has said through his spokesman, Jack Langer, that he

met with his source at the White House grounds in order to have proximity to a secure location where he could view the information provided by the source.

And that Langer also said,

The chairman is extremely concerned by the possible improper unmasking of names of US citizens, and he began looking into this issue even before President Trump tweeted his assertion that Trump Tower had been wiretapped.

Why does Schiff keep trying to shift the subject away from that unmasking—and who authorized it, who did it, who leaked it—which unmasking is a felony, to focus solely on the method used to look at some information?

Why does Schiff want so badly to bury those questions and their answers?

A Plan for Rigorous Enforcement

Mark Dubowitz, Chief Eecutive of the Foundation for Defense of Democracies,  writing in The Wall Street Journal, had some thoughts regarding strict enforcement of the Iran nuclear weapons agreement and some thoughts on an alternative path for dealing with Iran and its nuclear weapons.  I’m focusing on the latter.

First, Mr Trump must address the Iranian threat the way Ronald Reagan treated the Soviet one. … The Trump NSC needs a similar plan, one that uses both covert and overt economic, financial, political, diplomatic, cyber, and military power to subvert and roll back the Iranian threat.

Second, the Trump administration, with an assist from Congress, needs to reinvigorate the sanctions regime aimed at Iran’s support for terrorism, ballistic-missile development, human-rights abuses, war crimes, and destabilizing activities in the Middle East.

The Trump administration also needs to put Iran on notice that the US will use force to counter Iranian aggression. Sanctions without the credible threat of military action will always be insufficient to change the regime’s calculus.

With regard to that last, “notice” by itself is just talk.  President Donald Trump will need to act, as well—having the Navy sink Iran’s fast boats that charge in provocatively and too close or other Iranian naval shipping that fire live weapons from too close will be necessary to give force to the rhetoric as well as to the sanctions.

My questions are these.  Do the Republicans in Congress have the stomach for this?  Do the Democrats in Congress have the integrity?

Another Assault on US Intellectual Property

Beijing has proposed requiring cloud-computing services providers to turn over essentially all ownership and operations to Chinese partners and could result in the transfer of valuable US intellectual property, according to the letter, viewed by The Wall Street Journal.

Not “could result”—technology theft transfer is the point of the requirement.  This comes against the backdrop of the People’s Republic of China’s ongoing technology requirements.

China already places restrictions on investing for foreign cloud providers operating in the country under rules passed in the last two years…including forced collaboration with rivals and technology transfer.

Is the PRC market really worth these losses?