US-China Commission Warns of Dangers, Recommends Action by William Hawkins (NAPSA)—The United StatesChina Economic and Security Review Commission was created by Congress in 2001 because changes in the wealth of nations translate into changes in the balance of power between nations. The Commission’s membership is composed of academic and private sector experts appointed by the leaders of both major parties in the U.S. Hawkins and Senate. The Commission studies the U.S. trade and investment relationship with Beijing, including the relocation of manufacturing and research facilities to China. The Commission held hearings on September 25 and sent its recommendations to Congress on October 15. The Commission suggested that President George W. Bush’s Manufacturing Initiative “include provisions that strengthen the competitiveness of U.S.-based manufacturers in light of the growing shift of production to China especially in high-tech and R&D” and also urged Congressional leaders to force action by the American and Chinese governments to address Beijing’s “unfair and mercantilist” trade practices. The Commission also wants to find out more about the technology U.S. companies are sending to China and recommended that Congress “consider establishing an enhanced, mandated corporate reporting system to better capture this information.” When many American firms are building not just factories, but research labs and training centers for Chinese scientists and engineers in sectors linked to the military, the need to know what is being given to Beijing is obvious. Historically, most trade has taken place between allies, lessening the worry that the gains from trade will be used to strengthen potential enemies. Trade with China is very different and dangerous, as Beijing has made no secret of its desire to undermine America’s leadership in world affairs. President Bush was unable to change Beijing’s policy in discussions with Chinese President Hu Jintao recently in Thailand. He should now turn his attention to more direct and effective measures that the United States can take to counter Beijing’s trade strategy and protect American economic and national security. William R. Hawkins is Senior Fellow at the U.S. Business and Industry Council, Washington, D.C.
