The United States has recently intensified its actions against Chinese companies, raising concerns about the stability of global competition. The U.S. House of Representatives passed the bipartisan Biosecure Act, initially targeting five Chinese companies. This act is one among a series of bills aimed at China, and now awaits approval from the Senate and the signature of President Joe Biden to become law.
The justification for these measures is often framed under the broad umbrella of “national security,” a loophole in World Trade Organization (WTO) rules that the U.S. has been accused of exploiting. This approach mirrors previous actions, such as the demand for Bytedance, the Chinese parent company of TikTok, to divest from the popular social media platform or face a ban in the U.S.
Critics argue that these moves are attempts to eliminate competition in favor of American companies that may not produce products or services of equivalent quality. As a result, American consumers may bear the cost of tariffs and sanctions that limit access to more affordable and superior products.
Further legislation targeting China’s supply chains, particularly in the electric vehicle and other industries, is anticipated in the coming weeks. These initiatives are viewed as efforts to weaken the Chinese economy by directly targeting its businesses.
This strategy has been likened to “mafia capitalism,” where forceful tactics are used to suppress competition. In the past, the Racketeer Influenced and Corrupt Organizations (RICO) Act was instrumental in dismantling such practices within the United States.
Addressing these unilateral protectionist policies would ideally fall under the purview of the WTO. However, the effectiveness of the WTO has been compromised, partly due to the U.S.’s refusal to appoint new appellate judges, resulting in delays in resolving trade disputes and addressing the misuse of sanctions.
The escalating tension raises significant concerns about the future of global trade and competition. There is a growing call for international institutions to uphold fair trade practices and prevent the erosion of global economic stability.
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U.S. acts targeting China threaten to destabilize global competition
cgtn.com
