An American committee, the US-China Economic and Security Review Commission (UCESRC) issued a 156-page report Wednesday, which gives detailed descriptions of Chinese companies' investments in the US. It claims the security and economic risks posed by China's large-scale investments as a "potential Trojan horse," which shocked us.
The US' investment in China is of a much larger scale. Many companies have close ties with Washington. If we use the logic in the report, there are a great number of "Trojan horses" in China. If so, Chinese people should be wary of these "Trojan horses," as local governments in China are busy courting foreign investment.
China doesn't have an organization like the UCESRC, which does nothing but destroy opportunities for mutual economic cooperation. Even if there was such a commission which issued a similar report, saying that Microsoft and IBM may overthrow China, those who wrote the report would be condemned.
The mentality with which China and the US see each other is changing. The Chinese, who have worried about US ambitions of subjugating China, have become positive, if not blindly so, while the Americans, who had no fear in the past, have become oversensitive, speculating as to the motives of Chinese companies.
We don't know whether these concerns are genuine, or whether the accusations are just a disguise for trade protectionism.
Globalization has affected the international distribution of industries. The US, which used to be at the top of the chain, is gradually feeling a sense of crisis. Chinese companies, which used to help their Western counterparts lower costs and boost efficiency, began to compete with them in terms of technology and investment. They are considered to be taking away the very interests of the West and posing a threat to their core competitiveness.
Such a mentality is spreading throughout the West. China cannot make one-sided sacrifices to eliminate it. If these suspicions became actions, we would expect that the free trade environment would be affected. If the US wants to remain the world's No.1, it can only rely on its real strength rather than opportunism.
On Wednesday, the US International Trade Commission decided to issue anti-dumping and countervailing duty orders against China's photovoltaic industry. China will certainly respond. If the US is indeed in decline, then these two commissions are accomplices to this.