By Daniel Mills
July 17, 2015
Economy In Crisis
The country of China has found a loophole in the World Trade Organization (WTO) laws and has once again found a way to one-up America. The communist country has created a law that allows them to ban any foreign imports and pushing out U.S. technology companies from China. This is just more evidence that the WTO is completely flawed and our relationship with China needs to reevaluated.
The loophole found is under the “National Security Law” in which China deemed its technology industry needs to be “secure and controllable.” Essentially, under this law, any foreign company is required to turn over to the government its computer code, encryption keys as well as it’s commercial computer networks.
The outcome of this new law could potentially be disastrous. Co-author of “Death by China” predicts that “It will definitely reduce trade which will definitely hurt people around the world.” He also mentioned that the U.S. companies will likely be hit the hardest since China is more likely to list us as national security threats.
Many studies have been conducted over the past couple of years to see the impact of China’s entry to the WTO in 2001. “Something big happened around the time China entered the WTO,” said Peter Schott, economist of the Federal Reserve. His findings showed that the biggest US manufacturing employment declines and largest surges in imports from China, when the country specifically joined the WTO.
China plays unfair and its costing America money and jobs. There is no benefit to trade with China at all. Their wages are at an average of $0.75 cents an hour which is causing our companies to close up shop here and move overseas in order to cut labor costs. That is creating a ripple effect leaving America out of good paying jobs, people obtaining large amounts of debt and not having money to pay it back. It is also causing a flood of cheap imports in which American companies simply cannot compete against. Our businesses are closing faster than they are opening and China is to blame.
On top of them bleeding us dry, they now want to kick out our technology companies from their country and steal their technology? When is enough going to be enough? There is no doubt that we must either get out of the WTO, or end our toxic relationship with China.