Is China Burning Bridges on Foreign Trade and Investment?

There are several alarming things that China is doing that are both interesting, and indeed, unfortunate, but they show a trend, one that has been getting worse over the last few years. One is the attacking of foreign companies over environmental regulations and then allowing Chinese owned companies to go “Scott Free” and while they are doing it they are saying to the world; “Look, we are complying with environmental regulations, we gave fines to these 100-companies!”

Yes, but they were all corporations with foreign interests, many US corporations, thus, China is trying to send a message to tell us not to push the environmental issues. Thus, China is using environmental laws and enforcing them on foreign owned companies and rather than their own that are doing most of the polluting. No one is stupid enough to buy into this game, and yes, foreign governments have; gotten the message too.

In fact, I’ll tell you what’s going to happen if this keeps up; China will be black-balled from the world, and the backlash will cause Chinese exports to crumble even worse, and thus, everyone in China will be hurt. Additionally, if China believes that it will retaliate onto the rest of the world, then surely future tariffs will be placed on products made in China, and the chinese will find themselves in a trade war, and the rest of the world will cut them off.

Free markets and world trade are a wonderful thing, but you cannot participate if you manipulate, cheat, and take advantage of trading partners. Trade is not war, trade is a mutual benefit and it must be treated that way over the long haul, otherwise everyone loses, and China will end up pissing off the Goose that lays the golden eggs. This is not funny, it’s not a game, and it will bite China in the butt if they keep this up. I’ve watched far too many countries pay a hefty price economically over such actions over the years.

This article was a result of a discussion about the latest developments over the Rio Tinto iron ore mine there in China. This conversation was with the author of a new book; “China: Has the Last Opportunity Passed by!?” The author Guang Wu explains how China is working through its challenges on its way to Super Power Global Status.