WSCRC

Washington State China Relations Council

US-China Briefing: Trade and Investment Policies in the Digital Ecosystem

On November 15, 2017, WSCRC teamed up with Gold Member Huawei Technologies to host a discussion of “Evolving Trade and Investment Policies in the Digital Ecosystem” at K&L Gates Law Firm in Seattle.
The expert panel featured Dan Ikenson, director of the Cato Institute’s Center for Trade Policy Studies, Joseph Williams, director of Economic Development for the Information and Communication Technologies for Washington state, and Michelle Zou, CEO of Pacific Technologies Consulting Group. Bill Plummer, Vice President of External Affairs for Huawei North America, moderated this informative briefing.
“Washington state understands technology,” explained Bill Plummer while discussing Huawei’s decision to select Bellevue, Washington as the site for its new Research and Development satellite. “ICT has become utterly borderless,” Bill continued, “and utterly interdependent.” His statement was substantiated by the diversity of persons in the audience—with backgrounds spanning from law to education to investment—who are invariably affected by the far-reaching influence of the ICT sector throughout the Seattle region.
Dan Ikenson’s extensive study on digital trade issues has convinced him that the possibility of a US-China trade war looms if outdated policies continue to govern digital trade. However, he stressed that negative outcomes are avoidable and proposed solutions which are explored in-depth in his publication, “Cybersecurity or Protectionism? Defusing the Most Volatile Issue in the U.S.-China Relationship.”
Joseph Williams concurred that, “There are no borders when it comes to advancement in tech.” Mr. Williams has observed that certain policies which hinder globalization often stymie innovation, particularly in the recruitment of top-level ICT talent, in which regard he views Washington as an “import economy.” He emphasized the criticality of developing intercultural understanding as a stepping stone to increased collaboration in advancing technology, which will benefit the entire region.
Michelle Zou was optimistic about the future of US-China tech relations, affirming that, “once everybody has a chance to put their goals on the table you really can reach a solution.” Through her experience navigating tech companies in both the US and China, Michelle discovered the necessity of wearing the others’ lens to seek out mutually beneficial solutions.
A networking reception followed the illuminating presentation and Q&A session.
Special thanks to and K&L Gates for providing the venue, to Huawei for co-hosting with WSCRC and to the panelists.
Summary author: Trudy Boothman

Policy Briefing Series – US-China Trade Relations: View from Beijing

On October 26, 2017, the Washington State China Relations Council assembled the ninth session of the policy briefing series at Davis Wright Tremaine Law Firm in Seattle.  James Green, the Minister Counselor for Trade Affairs to the Office of the United States Trade Representative (USTR) at the U.S. Embassy in China and advisor to the Ambassador on trade policy, discussed “US-China Trade Relations: View from Beijing.”

Through the course of over two decades of work in China, James Green has advised five ambassadors on trade policy and counseled numerous trade representatives, including current USTR Robert Lighthizer, who has identified China Relations as a key focus during his time in office.

The decade-long conversation regarding terms of the Bilateral Investment Treaty (BIT) between US and China was a major point of discussion. BIT negotiations gained momentum around 2013 but recently have been lying low in consideration of more pressing matters. Ratification of a treaty is an ambitious goal, Mr. Green pointed out, as treaties require a two-thirds senate majority to pass. He emphasized that timing and the provision of adequate context are key when discussing the Treaty with members of Congress. Mr. Green opines that it is in the Treaty’s best interest that it be temporarily sidelined, as it is preferable that dialogue continue at a deliberate pace than that the Treaty be written off hastily in this time of uncertainty.

Mr. Green shared insights on difficult policy questions such as China’s “negative list” in trade agreement negotiations, technology transfer, and access to the finance and banking industries. His insider view from being on the ground in Beijing provided a unique perspective on these issues, particularly in light of authority shifts following the 19th National Party Congress.

Mr. Green’s expert knowledge on a variety of topics involving current US-China Relations sparked a dynamic Q&A session following the presentation.

Special thanks to Davis Wright Tremaine for hosting James Green and the WSCRC for this session of the Policy Briefing Series.

Summary author: Trudy Boothman

 

US-CHINA RELATIONS: PROGRESS AND UNCERTAINTY

On October 27, 2017, WSCRC partnered with the World Affairs Council for a panel discussion at K&L Gates Law Firm in Seattle. Mercy Kuo, WSCRC President, and James Green, Minister Counselor to the United States Trade Representative and trade policy advisor to the U.S. Ambassador in Beijing, engaged in a lively discussion moderated by Jackie Miller, president of the WAC.

Dr. Kuo and Mr. Green outlined their respective views on areas of progress and uncertainty in current US-China relations, providing all in attendance with a better-informed sense of where relations stand and where they are heading.

Mr. Green discussed interactions between China’s state-capitalist model and WTO market expectations, and identified sectors of the US economy which are most likely to become embroiled in controversy over the definition of “unfair trade practices.” He continued by addressing the pros and cons of the Trump administration’s plan to favor bilateral trade negotiations over multilateral agreements. He advised that the US examine its historic commitment to free trade and to rally its market allies to ensure the advancement of fair and sustainable trade models.

Dr. Kuo unpacked motives behind China’s ambitious Belt and Road Initiative, linking it to the Party’s priorities coming out of the 19th National Party Congress. In a semantic analysis of 19th versus 18th National Party Congress speeches, Dr. Kuo found that mentions of “state,” “military,” and “party” increased, while mentions of “reform” decreased. In terms of rhetoric, these items are likely to be prioritized in the new era of Chinese hegemony which President Xi plans to usher in. Moreover, she explained implementation of BRI projects will reflect China’s objective to play a more prominent leadership role in the region.

Following the panel conversation, the audience guided the discussion with a host of thought-provoking questions regarding one of the world’s most prominent bilateral relationships.

Special thanks to the World Affairs Council for co-hosting this event, and to K&L Gates for providing the venue.

Summary author: Trudy Boothman

Cybersecurity: US-China Cyber-Enabled Economic Warfare

On October 16, 2017, WSCRC joined the AJC Asia Pacific Institute to welcome Dr. Samantha Ravich to an invitation-only discussion on cybersecurity at WSCRC in Seattle. Dr. Ravich, Principal Investigator for the Project on Cyber-Enabled Economic Warfare and former Deputy National Security Advisor in the Office of Vice President Cheney, shared her perspectives on growing security challenges of cyber-enabled economic warfare.

Based on extensive knowledge and experience in the field, Dr. Ravich elucidated the multi-dimensional nature of the motives behind cyber-attacks and the relationship between the US economic and military strength. Dr. Ravich detailed how cyber-attacks pose an imminent danger to critical US industries including banking, infrastructure, intellectual property, and intelligence, which underpin the economy and fund US powerful military.

While the US and China are often seen as being at odds in the terms of cybersecurity, Dr. Ravich pointed out that in fact it is in the best interest of both parties to work together on this front, especially in consideration of the interdependence of the two economies. Additionally, Dr. Ravich discussed the potential role that Israel, a global leader in cybersecurity, could play as the third corner of the US-China-Israel triangle, in leading the conversation on cybersecurity and attacks and defining global security norms.

Special thanks to the AJC for co-organizing with WSCRC and to Dr. Samantha Ravich for participating in this informative, invite-only briefing.

Summary author: Trudy Boothman

Policy Briefing Series — Free and Fair Trade: Assessing US-China Trade Policy

     
     On October 19, 2017, WSCRC convened the eighth session of the Policy Briefing Series at Harris Bricken Law Firm in Seattle. Murray Lee, owner of MKL Enterprises, and William Perry, an international trade lawyer, addressed the issue of free and fair trade in the United States’ trade policies regarding China.
     Mr. Perry explained that free trade is vitally important to the wellbeing of the US economy and to its global competitiveness. In Mr. Perry’s opinion, it is critical that the US remain stalwart on issues of free and fair trade as the global trend leans ever more strongly toward Free Trade Agreements (FTAs).  His concern regarding the current administration’s push toward protectionist policies is the risk they pose to agriculture and the high-tech industry, both of which rely heavily on trade and exports. Perry urges policy makers to consider three factors as they create policies which will have seriously implications for the US economy. Firstly, that they bear in mind that compromise is the essence negotiation, and that other nations have a right to sovereignty and to seeking their own economic interest. Secondly, that the costs of not joining a trade partnership must be carefully weighed. Lastly, they must consider that unwillingness to negotiate may result in loss of credibility and influence, which could portend reciprocally difficult demands upon the US in future negotiations as well as relinquishment of global influence.
     In Murray Lee’s opinion, the issue of reciprocity stands at the forefront of US trade relations with China. Mr. Lee expects that the two systems—the United States’ market driven economy and China’s centrally controlled system—will come to a head in the coming decades; the “question of the century” is what the collision will look like. China faces a “host of challenges and…panoply of complex issues,” explained Mr. Lee, but China’s ambition to attain global economic preeminence cannot be underestimated. “Reciprocity is needed, but I don’t think it’s there right now,” Mr. Lee concluded.  Consequently, Mr. Lee advocates that we “proactively anticipate” problems, and create a game plan to address them. This will require engagement at every level to promote dialogue, delineate boundaries, and eventually create fair and reciprocal trade access.

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