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Robert Gmeiner - How Trade with China Threatens Western Institutions: The Economic Roots of a Political Crisis

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Robert Gmeiner How Trade with China Threatens Western Institutions: The Economic Roots of a Political Crisis
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How Trade with China Threatens Western Institutions: The Economic Roots of a Political Crisis: summary, description and annotation

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This book evaluates the institutional environments of China and the United States, and the West more broadly, and how they affect their trading relationship, with specific emphasis on intellectual property theft and other allegations of unfair competition. The economic and political characteristics of the two countries affect the balance of power in their trading relationship, with ramifications far beyond jobs and output. The major theme is Chinas ability to free ride on Western institutions through intellectual property theft and extortion. This free riding is far more than just infringing patents and reaping profits; it creates a combination of incentives for political pressures in the West that diminish the free market and liberal Western values. The result is the classic result of free riding underprovision, or degeneration, of the Western institutions that made the West prosperous and free. At the same time, Chinas economic might, military prowess, and global soft power increase, often with deleterious effects for freedom and free markets. This book is distinctive because it integrates public choice ideas about economic institutions, state action, and strategic behavior into international trade. It also takes account of the economic characteristics of China and the West and explains why they present a situation that is fundamentally different from other trade disputes. Institutions and political influence are central to this books analysis of trade, which can be more dangerous and more disguised than the welfare gains from trade. Providing a concise and lucid distillation of pressing issues, this book is critical reading for scholars studying trade with China and its effects on both global and Western innovation, economic output, soft power, and freedom more broadly.

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Robert Gmeiner - How Trade with China Threatens Western Institutions: The Economic Roots of a Political Crisis
How Trade with China Threatens Western Institutions: The Economic Roots of a Political Crisis
Robert Gmeiner
How Trade with China Threatens Western Institutions: The Economic Roots of a Political Crisis

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Book cover of How Trade with China Threatens Western Institutions Robert - photo 1
Book cover of How Trade with China Threatens Western Institutions
Robert Gmeiner
How Trade with China Threatens Western Institutions
The Economic Roots of a Political Crisis
1st ed. 2021
Logo of the publisher Robert Gmeiner Methodist University Fayetteville - photo 2
Logo of the publisher
Robert Gmeiner
Methodist University, Fayetteville, NC, USA
ISBN 978-3-030-74708-4 e-ISBN 978-3-030-74709-1
https://doi.org/10.1007/978-3-030-74709-1
The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021
This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use.
The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

No cover credit line.

This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG

The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

For Carmel, who was endlessly patient and supportive through the countless hours I spent writing this book.

Preface

Chinas perception among Western countries has changed much in recent years. China itself, however, has been remarkably consistent in its goals and aims. Views in the West have begun to change as China has become more assertive. Chinas assertiveness is more of a reflection of its growth and newfound stature than any change of policy or attitudes of its leaders. It was once commonly believed that trade between China and the West would help China liberalize. Few major Western leaders seem to believe that anymore, although there is no clear consensus on what should be done. This book makes the case that, instead of causing China to adopt the Wests model, trade has caused Chinese influence to grow in the West to the detriment of deeply held Western ideals of free markets, freedom of expression, property rights, and democratic political institutions. In addition to chronicling the rise of Chinese influence in the West, this book explains the reasons why it has happened, which are inextricably linked to the welfare gains from trade.

Robert Gmeiner
Fayetteville, USA
Abbreviations
AIA

Leahy-Smith America Invents Act of 2011

AmCham

American Chamber of Commerce (in a Foreign Country)

ASD

Australian Signals Directorate

ASEAN

Association of Southeast Asian Nations

ASPI

Australian Strategic Policy Institute

BRI

Belt and Road Initiative (China)

CAFC

Court of Appeals of the Federal Circuit (United States)

CCP

Chinese Communist Party

CFIUS

Committee on Foreign Investment in the United States

CMC

Central Military Commission (China)

CMI

Civil-Military Integration (China)

CPI

Consumer Price Index

CPPCC

Chinese Peoples Political Consultative Conference

CSAIL

Computer Science and Artificial Intelligence Laboratory (Massachusetts Institute of Technology)

CSSA

Chinese Students and Scholars Association

DoD

U.S. Department of Defense

DOJ

U.S. Department of Justice

EFW

Economic Freedom of the World Index

EU

European Union

FBI

U.S. Federal Bureau of Investigation

FCC

U.S. Federal Communications Commission

FDI

Foreign Direct Investment

FROCA

Federation of Returned Overseas Chinese Associations (China)

GDP

Gross Domestic Product

IJOP

Integrated Joint Operations Platform (China)

IP

Intellectual Property

IPR

Intellectual Property Rights

IPRWC

IPR Working Conference (China)

MIT

Massachusetts Institute of Technology

MITI

Ministry of International Trade and Industry (Japan)

MOFCOM

Ministry of Commerce (China)

MOFTEC

Ministry of Foreign Trade and Economic Cooperation (China)

MOU

Memorandum of Understanding

NATO

North Atlantic Treaty Organization

NBA

National Basketball Association

NDRC

National Development and Reform Commission (China)

NIPA

National Intellectual Property Administration (China)

OCAO

Overseas Chinese Affairs Office (China)

OECD

Organization for Economic Cooperation and Development

PBOC

Peoples Bank of China (China)

PLA

Peoples Liberation Army (China)

PTAB

Patent Trial and Appeal Board (United States)

Quad

Quadrilateral Security Dialogue

R&D

Research and Development

SAFE

State Administration for Foreign Exchange (China)

SAR

Special Administrative Region (SAR)

SASAC

State-Owned Assets Supervision and Administration Committee (China)

SIPO

State Intellectual Property Office (China)

SOE

State-Owned Enterprise

SPC

State Planning Commission (China)

THAAD

Terminal High Altitude Area Defense (United States)

TPP

Trans-Pacific Partnership

TRIPS

Agreement on Trade-Related Aspects of Intellectual Property

UFWD/United Front

United Front Work Department (China)

UNCLOS

United Nations Convention on the Law of the Sea

USPTO

United States Patent and Trademark Office

USTR

Office of the United States Trade Representative (U.S.)

WIPO

World Intellectual Property Organization

WIV

Wuhan Institute of Virology

WTO

World Trade Organization

Contents
The Author(s), under exclusive license to Springer Nature Switzerland AG 2021
R. Gmeiner How Trade with China Threatens Western Institutions https://doi.org/10.1007/978-3-030-74709-1_1
1. Introduction
Robert Gmeiner
(1)
Methodist University, Fayetteville, NC, USA

Now that China is a major trading nation with the worlds second-largest economy, most if not all of the world must confront the reality that Chinas actions affect the global economy and that of many individual countries. This necessitates economic and political decisions by firms and governments. These decisions are made with a view toward economic gain, political expediency, and moral philosophy. This book highlights the ramifications of trade between China and the West that go far beyond economic welfare gains and specifically focuses on institutions. Succinctly, institutions are arrangements and structures that undergird culture and society. In the West, institutions include the free market, rule of law, freedom of expression , property rights , constitutionally limited government, and many others.

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