John,
As the U.S.-China trade war escalates, it is worth reflecting on the words of a former president, who said:
“I will not stand by when our competitors don’t play by the rules… That's why we have to make sure the United States – and not countries like China – is the one writing this century's rules for the world's economy.”
That was President Obama ten years ago, a keen reminder that this dustup with China was a long time coming.
For years, Democratic and Republican leaders alike have been concerned about the U.S. economy’s growing dependence on imports from China, which include:
- Almost $300 billion more in goods each year than they import from us.
- 40% of our penicillin and 40% of our heparin (which prevents blood clots).
- 80% of the rare earth metals needed for wind turbines and other renewable energy technologies.
- 70% of the lithium and cobalt and 100% of the processed graphite used in batteries.
To learn more about the fraught economic relationships between China and the U.S., read the No Labels team policy pieces here and here.
Additionally, there is the Chinese Communist Party’s increasingly hostile actions directed at the U.S. and our allies.
- America loses as much as $600 billion annually in intellectual property theft from China.
- Chinese government officials recently admitted to U.S. officials that they were behind major cyberattacks on U.S. telecom companies, the electric grid, and other critical infrastructure.
- According to the Admiral leading the U.S. Indo-Pacific Command, China has increased its military pressure around Taiwan by 300%, noting these “are not just exercises, they are rehearsals [for an invasion].”
None of this means the U.S. has to escalate its trade war with China … or worse.
It does mean our leaders in Washington need to pull their heads out of the sand and stop treating people from the other political party like implacable enemies. Chinese President Xi Jinping would like nothing more than Americans to stay at one another’s throats.
If members of Congress can find the will, there is plenty they could work on together to help America counter China. In 2023, the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party released a report with 150 specific policy recommendations, many of which still have not been implemented.
It should be clear to everyone that the United States and the Chinese Communist Party are competing to set the course of the world for the 21st century. That is why No Labels invites you to a special call on Monday at 5 PM ET with Paul Boesen, the Chief of Staff at GreenPoint Group, a U.S.-China strategic advisory firm. A Mandarin speaker who has worked in private equity and investment banking, Paul has led business development efforts in China for a private education company.
