Ultimate Economic Conflict between China and Democratic Countries

Cover
Endorsement
Half Title
Series Information
Title Page
Copyright Page
Table of Contents
Illustrations
Preface
Authors' Preface
Abbreviations
1 Introduction: When the ‘Socialist Market Economy’ Meets the Globe
	The US–China Escalating Conflicts
	Will Economic Development Lead to Democracy?
	The Peculiar Role of Chinese Businesses in the World Economy
	The Intrinsically Unfair Economic Competition
	Are Political Institutions Malleable?
	The Unjust Advantages of Authoritarian Rulers in the 21st Century
	Is Smooth Competition Possible?
	Why Do We Focus On Economic Conflicts?
	Organisation of This Book
	Notes
	References
2 Made in China 2025: The Issue of Government Subsidies
	Background – Imposing a Future Tariff?
	The Big Picture – The US–China Trade War
	Three Structural Changes Since the Marrakesh Agreement
	First Change: Prevalence of Increasing Returns
		Why Do High-Tech Industries Have Increasing Returns?
		What About the US Human Genome Project?
		What About Germany’s Industrie 4.0 Project?
		Can Democratic Governments Subsidise Particular Businesses?
		Few Exceptions in Democratic Countries
		The Crowding-Out Effect of the Made in China 2025 Project
	Flaws in the WTO’s Government Subsidies Rules
		Summary and SCM Revision Directions
	Second Change: The Impact of Prevalent State-Owned Enterprises
		Chinese Economic Reforms – The Origin of the Prevalence of SOEs
		Regulation Deficiencies
		Rule References in Regional Agreements
		Suggestions for WTO Reforms
	Third Change: Challenge From the Internet
		The Digital Revolution and Unfair Trade
		Website-blocking and Other Business Interference
	Conclusions
	Notes
	References
3 E-Commerce Mercantilism: The Issue of Internet Blocking
	Background – China’s Internet Blocking and the Great Fire Wall
	China’s E-Commerce Advantages
		The Disproportionate Prosperity of China’s E-Commerce
		Unfair E-Commerce – Collateral Damage of Cross-Border Data-Flow Blocking
		How Does Digital Mercantilism Work?
		How Broad Is China’s Internet Blocking?
	E-commerce Implications of Internet Blocking
		Per-click Waiting Time Statistics – Cross Country Tests
		Per-click Waiting-Time Statistics – Reverse Tests
		Mode-3 Alternative for a Few Large Businesses
		Per-click Waiting-Time Statistics – SME Tests
	Can the WTO Deal With Digital Mercantilism?
		Weak Commitments of the GATS
		Could the GATS and GATT Articles Apply?
		Could Other Countries Counteract?
	Other Issues Related to China’s Internet Control
	Conclusion – Unpromising WTO E-Commerce Reform
	Notes
	References
4 Banning TikTok and WeChat: The Issue of Privacy Protection and National Security
	Introduction
	Privacy Protection in the US
		Historical Development
		Changes After the 1980s
		Prevalent Surveillance After 9/11
		Challenges in the Era With Big Data and Artificial Intelligence
	Privacy Protections in the European Union
	The TikTok/WeChat Controversy
		Banning TikTok
		Banning WeChat
		Why Do TikTok/WeChat Constitute a National Security Concern?
	Ties Between Chinese Companies and the CCP
		Internal and External Control of the Business
		International Outreach of Controls
		Fundamental Difference Between Authoritarian and Democratic Countries
	Are Big Data Really Dangerous?
	Conclusion
	Notes
	References
5 Enacting HFCAA: The Issue of Listed Company Accountability
	Background – What Is a ‘Public’ Company?
		The Risk of Investing in Listed Chinese Companies
		The Agency Costs of Chinese Companies
	China’s Corporate Governance Reform, 1978–2010
		Establishing Regulatory Rules and Agencies
		Encouraging Public Listing
	The PCAOB Issue: Power and Sovereignty of Auditing
		CPAs Being Trapped in Political Dilemma
		Failure to Improve Listed Companies’ Transparency
	Continuous SOE Reform, Or Reversal?
		The Role of the CCP in Listed Companies
		Party-building Vs Corporate Governance
	Subtle Private Companies in the Future
	Conclusions
	Notes
	References
6 Antitrust Laws in the Globalisation Era: The Issue of Competitive Neutrality
	Introduction
	Similarities and Disparities Between Antitrust Laws
		An Overview of Antitrust Laws and Their Respective Goals
		Antitrust Laws in Jurisdictions With Market-Oriented Economies
		The AML ‘Looks’ Like Antitrust Laws Based On Market-Oriented Economies
	A Level Playing Field and Competitive Neutrality
		The Level Playing Field for Global Economic Activities
		Ownership- and Nationality-Neutral to Prevent Neutrality Distortion
	The AML Is Distortive Against a Level Playing Field and Competitive Neutrality
		The Distortive Aspects of the AML
		The AML’s Designs for SOEs to Gain Advantages
		AML’s Designs Are Disadvantageous to MNCs
		Helping Giant SOEs to Meet the National Outward Looking Policy
		An Example: Huawei Vs Qualcomm
	Needing a New Framework to Ensure Competitive Neutrality
		The Adverse Effect of Anti-Competitive AML
		To ‘Retroactively’ Correct ‘Non-Neutrality’?
	Conclusions
	Notes
	References
7 Cross-Border M&A Control: The Issue of State Capitalism
	Introduction
	National Security Risks Due to Differences in Economic Structure
		Party-state Capitalism vs Market-Oriented Economy
		The National Security Issue Deserves More Attention
	Different FDI Patterns – Some Examples
		Investments From Democratic Countries to China
		China’s Belt and Road Initiative
		Comparisons of Investment Patterns
	National Security Risks Related to M&As
		China’s SOEs as a National Security Issue
		State-subsidised Capital as a National Security Issue
		Foreign Ownership/Control of Certain Sectors as a National Security Issue
		Foreign Ownership/Control of Critical Technologies as a National Security Issue
	Antitrust Law and the Role of National Security
		Antitrust Laws Governing M&As
		Sporadic Consideration of National Security in Traditional Antitrust Practices
	Security Considerations in Antitrust Laws – Country Perspectives
		The US Perspective – No Systemic Consideration of National Security
		The EU and the UK – Systemic Consideration of National Security Is in Place
		A Loophole in the Existing Considerations
	Systemic National Security Considerations Under Investment Law
		US Investment Review to Consider National Security
		EU Investment Review to Consider National Security
		UK Investment Review to Consider National Security
	Regulatory Gaps to Be Closed
		Introducing National Security Into the Antitrust Assessment of M&As
		Introducing National Security Into the Investment Review of Cross-Border M&As
		Changing the Intervention Thresholds for the Antitrust Law and Investment Review
	Conclusions
	Notes
	References
8 Forced Technology Transfer: The Issue of Insufficient Remedies
	Introduction
	Defining Forced Technology Transfers
	FTT in China: Approach, Controversy and Effect
		Mandatory Joint Venture
		Technology ‘Sharing’ With JV Partners
		Fifteen Shades of FTT
		Special Features of Certain Industries
	International Treaties That Regulate FTT
	Remedies to FTT (And the Lack Thereof) in China
		Bring a Case to the WTO?
		The Judicial System in China
		Filing a Suit in China?
		Reforms and Changes Under the Xi Regime
		Genuine Reforms?
	What Could Be the Solutions?
	Notes
	References
9 How to Dance With the Dragon?
	Chinese-style Globalisation?
	The Internal/External Conflicts of China’s Globalisation
	Value Differences Between Authoritarianism and a Liberal Market Economy
	Differences Between Now and the Containment Period
	Identifying the Democratic Values Behind Coalition Strategies
	Can We Expect China to Rectify Itself in the WTO?
	Reconstructing a Set of Fair World Trade/Economic Rules
	Notes
	References
Index