WASHINGTON - The Information Technology and Innovation Foundation today released a major report, "Enough is Enough: Confronting Chinese Innovation Mercantilism," which details China's increasing use of dubious trade practices to acquire global competitive advantage in nearly all industrial sectors.
"In the last five years, China's aggressive use of standards manipulation, forced tech transfer, IP theft and other practices have come to pose a serious threat to the rules-based trading system," said ITIF President Robert D. Atkinson, who authored the report. "The time of complacency must end. The United States needs to not only ramp up its own efforts but also to rally its trading partners in pushing changes in Chinese practices. We should not forget that China needs us more than we need China. The United States and other countries need a China that aims to compete, not destroy."
In the report, Atkinson takes on camps in the economic establishment who have long cautioned against meaningful measures to check China's use of what he calls "innovation mercantilism."
The report makes clear the United States should expand and improve trade ties with China but lays out how China is going beyond traditional competition and unabashedly seeking an absolute advantage not only in traditional manufacturing but also in a wide range of innovation-intensive industries. This has and will further reduce U.S. global competitiveness and stymie job creation at home. In addition, other countries have begun to mimic China's unfair and often illegal policies. This will ultimately choke off international trade's potential to benefit all countries and lead to more hunkering down for non-productive confrontations."
The report comes one day after the