Thursday, October 11, 2012

China/US trade spat heats up

The Chinese are not pleased with US capitalism claiming national security in an effort to block Chinese ownership of US concerns.  The House Intelligence Committee warned US companies not to do business with Huawei Technologies and ZTE Corp two major Chinese firms saying they were a "Threat to national security".  Huawei along with  Bain Capital bought 3Com Corp in 2007.  3Com Corp sold network security services to the Defense Department and government regulators put a stop to the deal.  

The US is worried as the Chinese government has interests in these firms. With the US increasing its influence in the area through bases in Central Asia, wanting to build more in Australia and military exercises with Japan, tensions between the two global leaders will continue to increase.
The Chinese edition of the Global Times which is owned by the Chinese government is going on the offensive calling for retaliation. The US, bogged down in predatory wars it cannot win, has been losing ground to Chinese firms expanding in to Africa, Australia and Latin America.  There is no such thing after all as free trade.

Here's an excerpt from the piece titled "The U.S. Must Be Subjected to Retaliation for Creating Trouble for Chinese Companies” via ChinaScope:
"The Huanqiu editorial asserted, “China needs to be serious about protecting its own enterprises. It should have the courage and the willingness to use state power to retaliate against those countries that make trouble for China's enterprises.

China must take action to let the United States and Europe understand that, if Chinese enterprises encounter trouble in their countries, their companies in China will then become scapegoats. Now is the time for China to show its determination to the United States and Europe.”

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