China fails to respond effectively when alienated



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Monday May 11, 2020 11:30 AM (GMT + 7)

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China's ineffective response when alienated - 1

Business is increasingly insecure because China behaves responsibly and easily conflicts with countries. Work: GETTY

In early April 2020, during the Chinese Politburo (China) Standing Committee, Chinese leader Xi Jinping called for “mental readiness to deal with prolonged external environmental change” when “Uncertainty factors are increasing.” This shows that Beijing’s leaders are aware of the alienation of companies and businesses.

What did Beijing do?

Observers said China has not announced any long-term policies or measures to deal with the effects of the country’s simultaneous withdrawal. According to the Asia Times, China can still expect the difficulties, obstacles, and losses in moving its production chain from China after decades of operation here to cause foreign companies and corporations to falter. .

However, according to Dr. Nguyen Thanh Trung, Director of the Center for International Studies (SCIS), the Chinese government has also begun to take steps to prevent the slowdown in foreign investment growth in the context of the trade war. United States-China continues to last. In March 2019, China passed the Foreign Investment Law, which came into effect on January 1, 2020 after just three months of urgent drafting of the law with the message of creating a level playing field for foreign and domestic investors. At the same time, it also protects the intellectual property rights of foreign investors from acts of forced technology transfer.

Not only institutionalized, the Chinese government has also released many red carpet policies for large investors who have high levels of technology with credit incentives. Billionaire Elon Musk’s world leader in electric vehicles, Tesla, received a loan of approximately $ 1.6 billion from a group of Chinese banks to invest in the construction of an electric car factory in Shanghai. . So does the German company Volkswagen. It also reached an investment agreement with China with the ambition to produce approximately half of its electric vehicles in China by 2028. GE Group of America’s General Electric Renewable Energy will also invest in the construction of a wind power plant. New to China with operations centers. Major suppliers also do the same, such as LG Chem Ltd, the world’s second largest lithium-ion battery manufacturer, and will also invest in building a battery supplier for Tesla in China.

As China moves up a new ladder in the global value chain, it is gradually choosing high-tech investors and needs no labor-intensive manufacturers. The Chinese government sees manufacturing companies moving factories from China to other low-cost countries as an inevitable trend. Today, they remain relatively calm because, in addition to the new preferential policies, China has structural advantages such as a large-scale economy with a market of 1.4 billion people, large and skilled human resources. Development infrastructure and product support system that no country can replicate.

Why is it not effective?

Despite taking action, confidence in the Chinese market has declined. First, the core problems in the U.S.-China trade conflict have yet to be resolved. These are: (i) compel China to respect intellectual property and prevent theft of technology; (ii) compel Beijing to enact fair trade laws for foreign companies. United States President Donald Trump appears to be delaying with China at this stage due to internal difficulties, but Chinese hawks have yet to accept the concessions made by China, which are mainly increasing imports from the United States. .

Second, competition between China and the United States and other countries is not simple in trade. At least as many ASEAN countries, Japan, India, Australia and the United States have disagreements with China on the issue of maritime claims. The EU has also gradually come to realize the real threat of China’s illegal conduct on important sea routes. China has recently deployed naval routes to the waters adjacent to Hawaii, where there are a large number of American garrisons.

This is not a military problem. Gregory B. Poling, Director of the Asia Maritime Transparency Initiative (AMTI), said that the United States Army was unable to address China’s aggression at sea. In addition to defense activities, the White House must intervene and direct the US Department of State. USA To carry out an international campaign to identify and expose China to diplomacy. The US government. USA It should also mobilize the Ministry of Finance to participate in and consider punishing individuals and vessels in the Chinese maritime militia for committing crimes in the South China Sea, similar to how the US does. USA Russian troops in Ukraine.

Similar to Poling’s proposal, American politicians and several countries have proposed an attack on China’s economy and diplomacy if he wants Beijing to respect the rules of the game, at least the United Nations Convention. National Law of the Sea. Therefore, the disturbing relationship between China and other countries also contributes to making this place no longer the ideal destination for companies as it was many years ago. Because contradictions in China and the rest of the world can flare up abnormally. But China has no indication that it will curb illegal behavior to reassure investors.

The current business owner is very concerned about an event of the same scale as COVID-19. Therefore, they need to know if the local government can cope and provide enough information so that they can assess the situation for themselves. So far, China has disappointed many large corporations in their handling of the epidemic.

Specialist KELLIE MEIMAN HOCK, Risk consulting firm McLarty Associates (USA))

Suspecting that China hides pandemic information does not help countries gain the trust of multinational companies. Therefore, the countries of the region, especially the countries of Southeast Asia, should take advantage of Beijing’s criticism to improve their management capacity in the eyes of foreign companies and investors.

Prof. PAVIDA PANANOND, Thammasat University (Thailand)

Source: https://plo.vn/thoi-su/trung-quoc-phan-ung-khong-hieu-qua-khi-bi-xa-lanh-911618.html

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