On May 21, 2012, the Senate Committee on Armed Services released a disturbing report on the extent to which counterfeit electronic parts had infiltrated the U.S. defense supply chain. While it’s bad enough when China’s counterfeit products hurt the U.S. economy and cost American jobs, it’s worse when they have the potential to comprise mission-critical defense systems. While it would be impossible to entirely prevent counterfeit parts from entering the U.S. defense supply chain, both government and industry (here, defense contractors primarily) must work in partnership to significantly curtail the penetration.
Testimony before the U.S.-China Economic and Security Review Commission
Rob Atkinson's testimony before the U.S.-China Economic and Security Review Commission stresses China has made a strategic decision to leapfrog its current development path to become a high-tech economy. The implications for the United States economy should be clear. The Chinese no longer want to dominate just cost-based commodity production and let us be the innovators, they want to also win in innovation-based economic competition, exactly what so many in the United States believe is America’s “sweet spot” and natural comparative advantage. While there is a broad consensus among experts on what China is trying to do, there is considerably less consensus over whether China will be successful and whether America should be concerned. But the bottom line is that America ignores China’s innovation policies and growing innovation capability at its own peril.
The Export-Import Bank Works For America: Responses to 18 Arguments for Cutting Ex-Im’s Authorization
The United States is falling behind in global economic competition, with the result being lost jobs and a rising trade deficit. One reason for this fall is that international trade has become much more competitive. U.S. enterprises are up against formidable competitors, many of them are receiving significant support from their governments as they seek to win in the race for economic advantage and the jobs that go with it.
One key factor in this competitive race is export financing. Foreign competitors enjoy substantial and growing support from their countries’ export credit agencies (ECAs). Indeed, many of the United States’ strongest international trade competitors invest significantly more in export credit assistance as a share of both GDP and exports than the United States does. With the temporary reauthorization of the U.S. Export-Import (Ex-Im) Bank set to expire on May 31, 2012 and as the U.S. Congress looks to reauthorize the Bank for a new five-year term, some free-market or libertarian organizations (e.g., Cato Institute, Club for Growth, Citizens for Limited Government, etc.) have been arguing against reauthorization, making a number of claims about why Ex-Im is not needed. Most of these arguments are not grounded in analysis, but rather are ideological in nature, based on faulty theories and assumptions about markets, globalization, competitiveness and trade. Here is a brief list of the common arguments made by Ex-Im opponents and why they are wrong.