This Time Gordon Is Correct

In an article today, China "expert" Gordon Chang discusses the real meaning of the trade disputes and tariffs being fought out between the USA and China.  The main issue isn't the balance of trade.  In truth, the central core of the dispute is Chinese theft of US intellectual property and innovation.  The big developments in technology of the next few decades are the stakes.  Who, for example, will dominate the 5G cell phone networks?  Will the guts of these systems churn out of factories in China or the USA?  The Chinese have a plan put in place by the central government to control the key technology markets in the future.  With this control, China would also control much of the world economy.  To that end, the Chinese government is subsidizing development efforts for the new technologies by something like 350 to 400 billion dollars per year.  That's enormous, especially when you realize that American government support for similar efforts here in the USA are more like 10 billion per year.  To make things worse, the Chinese also have an organized effort to steal or buy US technology that will allow the Chinese to leap ahead of America without having to spend the effort to develop the technology themselves.  The current "trade" dustup is really more about ending or blunting this Chinese effort so that US companies can stay on the forefront of technological change.  The future of the US economy is at stake.

I have criticized Gordon Chang many times in the past for his views on China and North Korea.  This time, however, he has hit the nail on the head.  We all need to pay attention; the issue is too important.  I can't get lost in some political anti-Trump charade or worry that the stock market is gyrating due to trade announcements.