The Trump administration has set fire to promote economic separation from the Chinese administration, but according to former deputy national security adviser Matthew Pottinger, he pursues an “aggressive separation” campaign against the world. It is actually Beijing.
“Beijing is making the world more and more dependent on China, reducing China’s dependence on the world, and taking advantage of the resulting leverage,” said Pottinger, who served under the Trump administration. We intend to advance Beijing’s prestigious political goals in China. ” Hearing US-China Economic Security Committee US-China Economic Security Committee.
Decoupling has been a strategy of the Chinese administration since joining the World Trade Organization in 2001, according to Pottinger, but this “aggressive decoupling” plan was approved by the Chinese administration in March. Made “very clear” in the latest economic blueprint. 5 years.
“Beijing wants to be separated, but it’s purely based on that condition,” he said. This tactic was implemented through the economic coercion of Australia’s Chinese administration, which currently exports more than one-third of its goods to China in response to Australia’s request for an independent investigation into the origin of the pandemic last year. I did. Since then, Beijing has lifted import restrictions on a variety of Australian commodities, including beef, coal, barley and wine.
The kind of segregation that the administration does not want blocks access to advanced technology from the United States and other Western nations.
“They still want access to our technology. They want access to our lab and our intellectual property,” Pottinger said.
“Scaring them and making them night sweats is a fear that at some point they could pull the plug of their ability to gain more access to cutting-edge technology.”
To counter the invasion of the Chinese administration, the United States should do more to block the influx of US capital into Beijing’s military-industrial complex.
A recent analysis by the Ministry of Commerce based on publicly available data shows that US public and private equity investments in Chinese and Hong Kong-based companies from 1992 to the end of 2020 total a $ 2.3 trillion market. It was worth it.
“For some reason, Wall Street overlooked the note that Beijing is in an existential battle for’the final end of capitalism and the ultimate victory of socialism’,” Pottinger said. It was.
In late 2020, then-President Donald Trump issued an executive order banning US investment in the Pentagon list of Chinese companies owned or controlled by the regime’s army. Pottinger recommended that the order be codified by Congress and expanded to include Chinese companies included in the Commerce Department’s “Entity List.” Dozens of Chinese companies have been added to this trade blacklist over national security and human rights issues.
Knowing that the federal government and parliament have taken a stricter stance towards Beijing in recent years, the Chinese administration has put a lot of effort into influencing American companies, former Secretary of State Mike Pompeo. Miles Yu, a Chinese policy adviser to the United States, warned at the same hearing.
“They are using access to the market to fully shape the behavior of these large companies and make them subordinate to China’s demand,” Yu said.
Yu recalled that then Secretary of State Mike Pompeo had several times invited the CEO of a large American company operating in China.
“In a private setting, they exploded with dissatisfaction with the Chinese government’s restrictions on them,” Yu said. “But openly, no one wants to say anything.”