2018-03-03 11:37:00 Sat ET
technology antitrust competition bilateral trade free trade fair trade trade agreement trade surplus trade deficit multilateralism neoliberalism world trade organization regulation public utility current account compliance
President Xi seeks Chinese congressional approval and constitutional amendment for abolishing his term limits of strongman rule with more favorable trade deals and economic ties. Foreign investors now activate their keen interest in Chinese tech titans such as Baidu, Alibaba, and Tencent (BAT). Baidu specializes in Chinese online search; Alibaba focuses on international e-commerce and fintech solutions; and Tencent derives most of its revenue from Chinese instant messengers such as WeChat and Tencent QQ, online games, and other entertainment and lifestyle software solutions. BATs operate as oligopolies with hefty competitive moats that manifest in the form of patents, trademarks, copyrights, and some other intellectual properties. Their high product market concentration serves as a major explanation for worse income and wealth inequality in China.
President Xi's strongman rule can further entrench these Chinese tech titans with product market dominance. This new Sino political economy defeats the western purpose of admitting China into the World Trade Organization (WTO) after the key post-war collapse of the Soviet Union. China resists both regional trade integration and global economic order and thus often fails to comply with WTO trade rules on fair trade and intellectual property protection.
Few mainland residents embrace democracy, economic freedom, and the rule of law in China.
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