Robert D. Atkinson, president of the Information Technology & Innovation Foundation (ITIF), a nonpartisan research institute, said the U.S. should crack down on Chinese companies that use unfair practices by giving the U.S. International Trade Commission (USITC) more authority to ban imports from those companies.
“The last decade has shown that U.S. policy won’t deter China from undermining the rules and norms of global trade. But barring imports from companies that benefit from unfair trade practices can mitigate the damage to firms in the United States,” Atkinson said in a statement. “Making unfair trade practices less profitable would send a clear message to China that if it systematically subverts trade rules or norms to benefit particular firms, then those firms will be denied access to the U.S. marketplace. And the administration should encourage allies to take the same stand.”
Atkinson recently released a report titled "How to Mitigate the Damage From China’s Unfair Trade Practices by Giving USITC Power to Make Them Less Profitable," in which he wrote that while U.S. officials mostly agree that China's economic and trade policies are unfair and pose a threat to American national and economic security, there is some disagreement about whether U.S. policy should prioritize "speeding up" American competitiveness in key industries, or "slowing down China" by working to thwart Chinese innovation. Atkinson argued that the U.S. should take both approaches simultaneously and said that while the Information Technology and Innovation Foundation (ITIF) has issued other reports focusing on boosting American competitiveness, the focus of this report is on "thwarting China’s aggressive innovation mercantilism."
In his report, Atkinson argues that previous attempts to "slow down" China have been mostly ineffective. He pointed to the limited results of the Trump administration's efforts to pressure the Chinese government to decrease predatory trade practices. Atkinson also noted that multilateral attempts to stymy China have not been possible because many of America's European allies see China as an important economic opportunity that they are unwilling to challenge. He noted that while the U.S. should continue to take actions such as limiting Chinese access to American universities and intellectual property, those actions alone will not be enough to hinder Chinese advancement in key industries.
Atkinson and ITIF advocated in a press release for limiting China's profits from predatory trade policies by undermining the profitability of China's unfair trade practices. Atkinson proposed that Congress amend the Section 337 of the 1930 Tariff Act in order to give the U.S. International Trade Commission (USITC) more authority in banning imports from companies that are engaging in unfair or predatory practices.
“Absent a significant change in Chinese government leadership, Chinese policies cannot be changed,” Atkinson said in the release. “And while policies to improve U.S. competitiveness are necessary, they aren’t sufficient. The United States must simultaneously protect its own market from unfair competition and slow down China’s advance by cutting off some of its profits.”
