Huawei’s debacle with US Congress raises troubling questions at many levels. Based on hypotheticals and a basic misunderstanding of China’s business environment, Huawei will pay a heavy price for a colossal failure to communicate across the two cultures.
Since the outbreak of the financial crisis, many people have hoped emerging economies like the BRICS countries would serve as the engine for continued growth in the world. However, there are reasons to be concerned that the global economic downturn may soon affect even emerging economies like China.
Many have argued that the recent WTO case brought by the US against China over automobiles and auto-parts subsides was simply meant to pander to US voters in the key swing state of Ohio. While certainly a consideration, the WTO case hints at a more complex trade relationship that has seen both countries use the WTO as a responsible means of settling disputes.
As the US Presidential election heats up, both candidates are focusing their criticism on job losses to China. Recent accusations by the Obama administration, bringing an auto and auto parts subsidy case before the WTO, will only heighten trade tensions. But are these disputes helping or hurting global markets?
As the House Intelligence Committee continues its investigation into China-based telecom companies over alleged security threats; Dr. Dan Steinbock examines the barriers companies like Huawei face when entering US markets.
With China’s economy slowing in recent months and the US economic recovery still sluggish, both countries have emphasized trade as a means of promoting and sustaining growth. While the possibility of economic friction between China and the US certainly exists, increasing trade does not need to be a zero sum game.
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