How China is Disrupting Global Markets

Is China’s economic rise driven by innovation or unfair trade practices like IP theft, subsidies, and currency manipulation? Let’s investigate.

Brought to you by the Behind Asian Team.

[BehindAsia]

Do you think China has unfair trade policies?

[gci_indonesia]

The the single most impactful practice of international trade exploitation is exchange rate manipulation. This is like an atomic bomb that dwarfs all other practices. In a fair floating exchange rate system (not controlled by the government or speculators), all the unfair trade practices you mentioned earlier will be neutralized by the exchange rate.

[jcvideo]

Why is pepsico on the list of largest R &D spending 😂

[misterbig]

USA
1. Subsidies to Domestic Industries
The U.S. provides subsidies to its agricultural and manufacturing sectors, making domestic goods cheaper and more competitive in international markets, which undermines foreign producers.


2. Tariff and Non-Tariff Barriers
The U.S. imposes high tariffs on certain imported goods and uses non-tariff measures like stringent safety standards to restrict foreign competition.


3. Intellectual Property Enforcement
Strict IP enforcement and lobbying for international adoption of U.S. standards have been criticized for favoring American corporations while disadvantaging foreign innovators.


4. Extrajudicial Sanctions
The U.S. imposes economic sanctions on other countries, often unilaterally, which can disrupt global trade and penalize companies doing business with targeted nations.


5. Manipulation of International Trade Rules
The U.S. has been accused of using its influence in the World Trade Organization (WTO) to push for rules that disproportionately benefit American businesses.


6. Currency Policies
Although less frequent, accusations of using the U.S. dollar's global reserve status to manipulate trade advantages persist.

UK

1. Colonial Trade Policies
Historically, the UK exploited its colonies by enforcing trade monopolies, extracting raw materials, and dumping finished goods at the expense of local economies.


2. Preferential Trade Agreements
The UK has been accused of negotiating trade deals that disproportionately favor British industries while limiting benefits for developing countries.


3. Subsidizing Agriculture
Like the U.S., the UK subsidizes its agriculture sector, creating an uneven playing field for foreign farmers.


4. Blocking Market Access
Through complex regulations, the UK has been accused of blocking market access for foreign products, particularly from developing nations.


5. Post-Brexit Trade Disruptions
Since Brexit, the UK has imposed regulatory barriers that some EU members and other trade partners see as unfair and protectionist.


6. Trade Imbalance Exploitation
Critics argue that the UK has leveraged its historical economic dominance to maintain trade imbalances with former colonies and less-developed nations.

[oLee-ly]

As a Chinese, I would like to say that Tesla also receives subsidies in China. It is absurd to believe that China disrupts the market through subsidies

[WongKienmin]

Subsidies --- when big US companies don't pay taxes in the US ---isn't this also subsidies ?

[JacksonWong-pwzq]

usa trade war, sanctions, tariff are fair pratice ?

[bongbong]

The main difference is that the profits that the China companies make goes into paying taxes to the country to keep improving.
The US companies pay little to no tax and still expect the government to take care of them when 'competitors' are winning.

[ericjiang]

If someone you helped become better than you, then they must be unfair

[WongKienmin]

We are hearing western companies are insisting technology transfer as a criteria for investing in western countries

[tessellar]

The only detailed example of WTO ruling against China (export restrictions) recounted at the end doesn't really come under the types of unfair trade practices (IP theft, dumping etc) that was explained earlier in the video and undercut the conclusion!

[stvdmc]

If dumping and subsidy are so advantages why do eu and usa do it. Aren't the eu and the rest of the anglo more wealthier than the chinese?

[WongKienmin]

I have engaged big western companies and they specifically say No technology transfer to local staffs

[oftenwrongphong]

So you're basically accusing China of practicing American capitalism.

[tradefortutara]

I hope 1 day I'll be able to peacefully visit West Taiwan🇹🇼.

[dylanthomas]

Great introduction to China's unfair trading practices, it would be required reading. If you explore more deeply you will find great complexity.

[martindiaz]

If China sells below cost, its taxpayers are harmed and its customers from outside benefit, who being able to buy cheaper will be able to sell more expensive.

If China imposes tariff barriers, it is to sell at higher price than its competitors. Chine lose export capacity and Chinese consumers themselves are harmed while the other countries are forced to replace the most expensive Chinese products whith cheaper domestic products.

If China imitates technology from abroad, Chinese industry benefits by increasing its productivity and its customers buying cheaper. It also forces innovators to continue innovating in order to mantain their windfall profits.

[mikezhang]

talking bs is this channel's only ability.😂😂😢😢😢