Reevaluating Free Trade with China

By Phyllis Schlafly

The voters who elected the new Congress expect it to cast off unconsitutional and discredited policies such as big deficit spending and judicial grabbing of legislative prerogatives. We also hope Congress will shake itself loose from the dishonest, anti-American trade policies of other countries, especially Communist China.

Although China is called a major trading partner, it treats U.S. companies like suckers, cheating them coming and going. China even intimidates U.S. businessmen so they don’t dare to criticize China’s unfair trade tactics. China has a long record of disciplining companies that fail to conform to China’s demands. Chinese regulations presume to dictate ordinary decisions of non-Chinese companies such as what equipment may be bought and from whom.

China has a Communist government, so the Communist Party is in the driver’s seat. China can violate with impunity all international law and trade agreements, slap taxes and regulations on U.S. plants in China, compel U.S. corporations to give their trade secrets and manufacturing know-how to Chinese competitors, and force Americans to keep silent about the unfairness of it all. The Chinese government passes short laws on complex industrial and financial subjects while leaving unlimited discretion to bureaucratic regulators. In authentic socialist practice, the regulators can use their discretion to advantage their friends and punish their enemies.

Major U.S. corporations, including our biggest technology companies, gave away their most valuable industrial secrets, and now they are asking themselves, Was it all worthwhile? Some people foolishly call our relationship with China “free trade.” But there is nothing free or fair about it; it is trade war between an aggressively protectionist Communist government and a U.S. that is shackled by foolish illusions about free trade.

Contributing Editor, Phyllis Schlafly, is the Founder and President of Eagle Forum. Used with permission.