This book investigates various dimensions of the economic conflicts between the US – and other democratic market-economy countries – and state-capitalist communist China in the past decade, examining how differences in institutions and ideology bring these about.
Through the lens of institutional analysis, the book elaborates and explains the underlying institutional designs and reasons behind the disputes, highlighting how such variances are embedded and reflect fundamental value divergences between China and other democratic countries.
This book will be of key interest to scholars, students, and practitioners in law, economics, political sciences, international relations, international organisations and global governance.
Author(s): C.Y.C. Chu, P.C. Lee, C.C. Lin, C.F. Lo
Series: Routledge Studies on Challenges, Crises and Dissent in World Politics
Publisher: Routledge
Year: 2022
Language: English
Pages: 204
City: London
Cover
Endorsement
Half Title
Series Information
Title Page
Copyright Page
Table of Contents
Illustrations
Preface
Authors' Preface
Abbreviations
1 Introduction: When the ‘Socialist Market Economy’ Meets the Globe
The US–China Escalating Conflicts
Will Economic Development Lead to Democracy?
The Peculiar Role of Chinese Businesses in the World Economy
The Intrinsically Unfair Economic Competition
Are Political Institutions Malleable?
The Unjust Advantages of Authoritarian Rulers in the 21st Century
Is Smooth Competition Possible?
Why Do We Focus On Economic Conflicts?
Organisation of This Book
Notes
References
2 Made in China 2025: The Issue of Government Subsidies
Background – Imposing a Future Tariff?
The Big Picture – The US–China Trade War
Three Structural Changes Since the Marrakesh Agreement
First Change: Prevalence of Increasing Returns
Why Do High-Tech Industries Have Increasing Returns?
What About the US Human Genome Project?
What About Germany’s Industrie 4.0 Project?
Can Democratic Governments Subsidise Particular Businesses?
Few Exceptions in Democratic Countries
The Crowding-Out Effect of the Made in China 2025 Project
Flaws in the WTO’s Government Subsidies Rules
Summary and SCM Revision Directions
Second Change: The Impact of Prevalent State-Owned Enterprises
Chinese Economic Reforms – The Origin of the Prevalence of SOEs
Regulation Deficiencies
Rule References in Regional Agreements
Suggestions for WTO Reforms
Third Change: Challenge From the Internet
The Digital Revolution and Unfair Trade
Website-blocking and Other Business Interference
Conclusions
Notes
References
3 E-Commerce Mercantilism: The Issue of Internet Blocking
Background – China’s Internet Blocking and the Great Fire Wall
China’s E-Commerce Advantages
The Disproportionate Prosperity of China’s E-Commerce
Unfair E-Commerce – Collateral Damage of Cross-Border Data-Flow Blocking
How Does Digital Mercantilism Work?
How Broad Is China’s Internet Blocking?
E-commerce Implications of Internet Blocking
Per-click Waiting Time Statistics – Cross Country Tests
Per-click Waiting-Time Statistics – Reverse Tests
Mode-3 Alternative for a Few Large Businesses
Per-click Waiting-Time Statistics – SME Tests
Can the WTO Deal With Digital Mercantilism?
Weak Commitments of the GATS
Could the GATS and GATT Articles Apply?
Could Other Countries Counteract?
Other Issues Related to China’s Internet Control
Conclusion – Unpromising WTO E-Commerce Reform
Notes
References
4 Banning TikTok and WeChat: The Issue of Privacy Protection and National Security
Introduction
Privacy Protection in the US
Historical Development
Changes After the 1980s
Prevalent Surveillance After 9/11
Challenges in the Era With Big Data and Artificial Intelligence
Privacy Protections in the European Union
The TikTok/WeChat Controversy
Banning TikTok
Banning WeChat
Why Do TikTok/WeChat Constitute a National Security Concern?
Ties Between Chinese Companies and the CCP
Internal and External Control of the Business
International Outreach of Controls
Fundamental Difference Between Authoritarian and Democratic Countries
Are Big Data Really Dangerous?
Conclusion
Notes
References
5 Enacting HFCAA: The Issue of Listed Company Accountability
Background – What Is a ‘Public’ Company?
The Risk of Investing in Listed Chinese Companies
The Agency Costs of Chinese Companies
China’s Corporate Governance Reform, 1978–2010
Establishing Regulatory Rules and Agencies
Encouraging Public Listing
The PCAOB Issue: Power and Sovereignty of Auditing
CPAs Being Trapped in Political Dilemma
Failure to Improve Listed Companies’ Transparency
Continuous SOE Reform, Or Reversal?
The Role of the CCP in Listed Companies
Party-building Vs Corporate Governance
Subtle Private Companies in the Future
Conclusions
Notes
References
6 Antitrust Laws in the Globalisation Era: The Issue of Competitive Neutrality
Introduction
Similarities and Disparities Between Antitrust Laws
An Overview of Antitrust Laws and Their Respective Goals
Antitrust Laws in Jurisdictions With Market-Oriented Economies
The AML ‘Looks’ Like Antitrust Laws Based On Market-Oriented Economies
A Level Playing Field and Competitive Neutrality
The Level Playing Field for Global Economic Activities
Ownership- and Nationality-Neutral to Prevent Neutrality Distortion
The AML Is Distortive Against a Level Playing Field and Competitive Neutrality
The Distortive Aspects of the AML
The AML’s Designs for SOEs to Gain Advantages
AML’s Designs Are Disadvantageous to MNCs
Helping Giant SOEs to Meet the National Outward Looking Policy
An Example: Huawei Vs Qualcomm
Needing a New Framework to Ensure Competitive Neutrality
The Adverse Effect of Anti-Competitive AML
To ‘Retroactively’ Correct ‘Non-Neutrality’?
Conclusions
Notes
References
7 Cross-Border M&A Control: The Issue of State Capitalism
Introduction
National Security Risks Due to Differences in Economic Structure
Party-state Capitalism vs Market-Oriented Economy
The National Security Issue Deserves More Attention
Different FDI Patterns – Some Examples
Investments From Democratic Countries to China
China’s Belt and Road Initiative
Comparisons of Investment Patterns
National Security Risks Related to M&As
China’s SOEs as a National Security Issue
State-subsidised Capital as a National Security Issue
Foreign Ownership/Control of Certain Sectors as a National Security Issue
Foreign Ownership/Control of Critical Technologies as a National Security Issue
Antitrust Law and the Role of National Security
Antitrust Laws Governing M&As
Sporadic Consideration of National Security in Traditional Antitrust Practices
Security Considerations in Antitrust Laws – Country Perspectives
The US Perspective – No Systemic Consideration of National Security
The EU and the UK – Systemic Consideration of National Security Is in Place
A Loophole in the Existing Considerations
Systemic National Security Considerations Under Investment Law
US Investment Review to Consider National Security
EU Investment Review to Consider National Security
UK Investment Review to Consider National Security
Regulatory Gaps to Be Closed
Introducing National Security Into the Antitrust Assessment of M&As
Introducing National Security Into the Investment Review of Cross-Border M&As
Changing the Intervention Thresholds for the Antitrust Law and Investment Review
Conclusions
Notes
References
8 Forced Technology Transfer: The Issue of Insufficient Remedies
Introduction
Defining Forced Technology Transfers
FTT in China: Approach, Controversy and Effect
Mandatory Joint Venture
Technology ‘Sharing’ With JV Partners
Fifteen Shades of FTT
Special Features of Certain Industries
International Treaties That Regulate FTT
Remedies to FTT (And the Lack Thereof) in China
Bring a Case to the WTO?
The Judicial System in China
Filing a Suit in China?
Reforms and Changes Under the Xi Regime
Genuine Reforms?
What Could Be the Solutions?
Notes
References
9 How to Dance With the Dragon?
Chinese-style Globalisation?
The Internal/External Conflicts of China’s Globalisation
Value Differences Between Authoritarianism and a Liberal Market Economy
Differences Between Now and the Containment Period
Identifying the Democratic Values Behind Coalition Strategies
Can We Expect China to Rectify Itself in the WTO?
Reconstructing a Set of Fair World Trade/Economic Rules
Notes
References
Index
