A bipartisan group of Members call on Obama to take a hard line with China.
A bipartisan group of Congressional leaders sent a letter to President Obama on Monday urging that he address eight key issues during his time with Chinese President Xi Jinping. The overarching message: China has fundamentally diverted its course away from necessary economic reforms and global standards. The U.S., therefore, needs to exert pressure to force China back onto a path that leads to a market-based economy and better living standards for its citizens.
The letter, signed by Senate Finance Committee Chairman Orrin Hatch (R-UT), Finance Ranking Member Ron Wyden (D-OR), House Ways & Means Committee Chairman Paul Ryan (R-WI), and Ways & Means Ranking Member Sander Levin (D-MI), states that China is not upholding its responsibilities to the global market. This comes as no surprise to anyone who has followed the stock market’s erratic ride in the last month.
China’s actions in regards to these issues are detrimental to its relationship with the United States.
China is a significant force in the global economy, but a number of its domestic policies detract from its ability to be a good global steward. These issues, discussed in the letter to President Obama, include currency practices, cybersecurity, Chinese state-owned enterprises, bilateral trade agreements, threats against U.S. companies, approval of biotechnology traits, and intellectual property rights.
China’s actions in regards to these issues are detrimental to its relationship with the United States. While the letter specifically addresses cyberattacks as a source of diminished trust between the two nations, the overall lack of transparency in China’s economy greatly exacerbates this problem. There are no true means of verifying China’s progress or lack of progress in meeting its global commitments.
This is a significant development as Congress takes a strong stand on China days before President Xi Jinping arrives in Washington. Presidential candidates have also made strong statements about China on the campaign trail. With this momentum in favor of tougher action against China, perhaps American businesses will finally get the tools they need to have an equal chance to succeed.