Stopping China's Mercantilism: A Doctrine of Constructive, Alliance-Backed Confrontation

66 Pages Posted: 8 Nov 2017

See all articles by Robert D. Atkinson

Robert D. Atkinson

Information Technology and Innovation Foundation

Nigel Cory

Information Technology and Innovation Foundation

Stephen J. Ezell

Information Technology and Innovation Foundation

Date Written: March 16, 2017

Abstract

There is a growing understanding that China is an outlier when it comes to global norms and rules governing trade, investment, and economic policy, and that the unremitting and even accelerating “innovation-mercantilist” behavior on the part of the Chinese government represents a threat not only to the U.S. economy, particularly its advanced industries, but indeed to the entire global economic and trade system. The previous three U.S. administrations sought engagement and dialogue with China’s leaders, in the belief and hope that this would lead the Chinese government to retreat from its mercantilist path. It should by now be clear that this approach has failed. For, rather than reform, China has doubled down on its innovation-mercantilist strategies, seeking global dominance across a wide array of advanced industries that are key to U.S. economic and national security interests. And despite the claims of some apologists for Chinese behavior, it’s clear what the end game is: Chinese-owned companies across a range of advanced industries gaining significant global market share at the expense of American, European, Japanese, and Korean competitors. A far more proactive, whole-of-government response, in tight partnership with our allies, is needed to ensure that Chinese innovation mercantilism is contained and then rolled back and a genuine market- and rules-based global trading system restored.

Keywords: innovation mercantilism, international trade, alliances, innovation, China, Europe, Japan, Korea, economy

Suggested Citation

Atkinson, Robert D. and Cory, Nigel and Ezell, Stephen J., Stopping China's Mercantilism: A Doctrine of Constructive, Alliance-Backed Confrontation (March 16, 2017). Available at SSRN: https://ssrn.com/abstract=3066379 or http://dx.doi.org/10.2139/ssrn.3066379

Robert D. Atkinson (Contact Author)

Information Technology and Innovation Foundation ( email )

1101 K Street N.W.
Suite 610
Washington, DC 20005
United States

Nigel Cory

Information Technology and Innovation Foundation ( email )

1101 K Street N.W.
Suite 610
Washington, DC 20005
United States

Stephen J. Ezell

Information Technology and Innovation Foundation ( email )

1101 K Street N.W.
Suite 610
Washington, DC 20005
United States

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