The recent surge in U.S. legislative measures targeting Chinese companies has sparked debates about the future of global competition. The latest initiative, the Biosecure Act, initially focuses on five Chinese firms, marking it as part of a broader strategy to challenge Chinese business competitors.
On Monday, the U.S. House of Representatives overwhelmingly passed this bipartisan bill, which will now move to the Senate before potentially being signed into law by President Joe Biden. This Act is seen as one of several aimed at curbing China's economic influence, following earlier efforts that included demands for Chinese-based parent company Bytedance to divest from TikTok or face a ban in the U.S.
Critics argue that the justification for these actions is cloaked under the umbrella of national security—a provision within the World Trade Organization (WTO) rules that has been utilized by both the Biden and Trump administrations. This approach is perceived by some as a means to eliminate competition in favor of U.S. companies, despite the latter often struggling to match the quality of their Chinese counterparts.
The repercussions of these policies are felt by American consumers, who bear the costs through tariffs and sanctions, limiting their access to a diverse range of products and services. Additionally, several other bills targeting Chinese supply chains in sectors like electric vehicles are on the horizon, signaling a continued effort to weaken the Chinese economy by directly attacking its businesses.
Drawing parallels to historical examples, this strategy has been likened to what some describe as "mafia capitalism," where aggressive tactics are used to stifle competition and control markets. The U.S. approach, while different in method, is argued to have similar outcomes, potentially disrupting global trade dynamics and economic stability.
Experts suggest that addressing these unilateral protectionist policies may require robust action from the WTO, comparable to the enforcement powers granted by the 1970 Racketeer Influenced and Corrupt Organizations (RICO) Act in combating organized crime. However, the effectiveness of such measures is currently hindered by the U.S.'s ongoing campaign to weaken the WTO, including the refusal to appoint new appellate judges, which delays the resolution of trade disputes and the misuse of sanctions.
As the geopolitical landscape continues to evolve, the international community watches closely, weighing the implications of these legislative actions on global trade, economic growth, and the balance of power between major economies.
Reference(s):
U.S. acts targeting China threaten to destabilize global competition
cgtn.com
