America now has a new list of restrictions upon China. These restrictions are imposed on exports, imports, direct investment, and financial securities.
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In the past few years, Washington’s and China’s policies have grown rapidly into the technology sectors like telecommunication, semiconductors, data security, and financial services. Growing bipartisan concern about Beijing’s actions and intentions have fueled these developments, with mere differences between the Trump and Biden administrations or between the White House and Congress.
Pres. Biden’s “Pretty please, with sugar on top” isn’t going to work with China and @WHO.
The WHO’s Dr. Tedros hums the Chinese national anthem in the shower while the American people pay his salary. pic.twitter.com/NZ0hOQUvIT
— John Kennedy (@SenJohnKennedy) June 17, 2021
The repercussions have been swirly of new restrictions which include exports, imports, direct investment, and financial securities which are fundamentally reshaping the U.S.-China economic relationship. Cross-Border business travel between these two countries which are the United States and China, essentially halted for the past two years because of the COVID-19 Pandemic, is unlikely to fully rebound because of increased caution and suspicion on both sides of the pacific.
At the same time as this more defensive approach to economic and technology competition with China has taken root, Congress has also gone on the derogatory by moving to appropriate new funding to areas deemed critical for maintaining U.S. competitive advantages in technology, manufacturing, and defense. The present depth and breadth of these approaches were hard to imagine just a few years ago.
The corporate sector, apart from facing expansion in government’s action with respect to doing business with China, must also contend with shifting public opinion and increased investor scrutiny. For example, on human rights issues along companies’ supply lines in China. looking forward to 2022 promises a continuation of these trends, which will have far-reaching impacts across multiple business sectors.
In the past three years, Washington has approved a raft of policy changes and regulations related to economic competition with China. In early 2018, The Trump administration applied and increased tariffs on Chinese goods in response to Beijing’s unfair practices, including industrial subsidies, forced technology transfer, and state-sponsored intellectual property theft. Leveraging new laws passed in 2018, Washington expanded the use of export controls in defense technology companies in which the most prominent was Huawei.
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