Has Trump changed his stance on China?
(Source: Russian Satellite News Agency 2020-02-19）
U.S. President Trump said he does not want to ban American companies from doing business with China and selling high-tech products to China, including chips and aerospace engines. Earlier, the Wall Street Journal reported that the Trump administration was considering banning General Electric Co. and France's Safran from exporting aircraft engines to China. Trump said he did not intend to use national security as an excuse to restrict w88.
At this time, one cannot help but feel that the positions of different departments of the US government, and even different officials in the White House administration, are contradictory. On the one hand, the Commerce Department has proposed raising standards for obtaining specialized export licenses for U.S. companies selling high-tech products, such as chips, to China. Now American companies are free to sell such products if the share of components produced within the United States does not exceed 25%. The Ministry of w88 proposed lowering the threshold to 10% and strengthening controls on the export of technology products. The Wall Street Journal also reported, citing sources within the Trump administration, that General Electric’s license to export LEAP 1C turbojet engines for installation on China’s narrow-body passenger aircraft Comac C919 may not be extended. However, Trump himself seemed to have suddenly learned the news and immediately said that "the United States will not become a difficult country to do business in" and should not impose unreasonable restrictions on companies under the pretext of "threatening national security."
Interestingly, the technological confrontation between the United States and China was launched by Trump under the pretext of national security. Trump said: We should not let Huawei enter the U.S. market because Chinese equipment carries espionage threats. The Department of w88 blacklisted Huawei, banning U.S. companies from supplying components to Huawei (the ban never took effect). All restrictions on the supply of high-tech products—whether chips or aerospace engines—are driven by the need to protect U.S. intellectual property. It seems that after China acquires technological products, it reverse-engineers them and then simply uses others’ solutions for its own production without having to spend a lot of money on research and development, thereby gaining an unfair competitive advantage and displacing the United States as a competitor.
Has Trump’s attitude towards China changed?Wang Zhimin, Director of the Institute of Globalization and Modernization at the w88 casinobelieves that Trump still hopes to do his best to hinder China's development. But he also cannot ignore his own country's interests. Moreover, Trump understands that competition between the two superpowers will do more harm than good.
Director Wang Zhimin continued: "From the current point of view, the Sino-US w88 war has lasted for a long time, and both sides have suffered considerable losses to a certain extent. If the Trump administration bans the export of General Aviation engines to China, it will not only have a greater negative impact on China, but also the United States. And the losses to the United States may be even greater, because China can also take countermeasures, including purchasing engines from other countries or developing its own patents, and even It is possible to reduce the purchase of Boeing passenger aircraft. In addition, the United States sells a single engine to China, and there is no problem of technology loss. Therefore, although Trump is unwilling to see the development of Chinese technology and is worried about competition with the United States, he actually represents the interests of the country. Pence, who has always been unfriendly to China, also said that it is difficult for China and the United States to decouple. If the two sides are in a stalemate and no one can come to Taiwan and suffer losses, the gains will outweigh the losses."
Aviation engines are the best example of how terminating cooperation with China will harm the interests of both parties. The LEAP1C engine is the preferred power plant for the Comac C919. The C919 should become a competitor to the Boeing 737MAX and Airbus 320neo. The advantage of Chinese aircraft should be the price, which is expected to be one-third lower compared to Boeing and Airbus. To be competitive, however, new aircraft must meet the highest standards of fuel efficiency and flight time. The engine plays a vital role in this. GE has developed the technology and the engines are advanced, economical and reliable. The Chinese engine manufacturer also plans to deliver a batch of its own experimental power units for the C919 by 2022. But even if everything goes according to plan, it will take another three years to obtain the certificate. Moreover, developing an aeroengine "from scratch" is an unimaginably long and expensive process. Therefore, if there are no foreign engines, it will undoubtedly be a long time before China's C919 aircraft is officially put into operation.
A ban on the sale of engines would also cause great harm to GE and Safran. The engine manufacturer's website states that China has ordered more than 5,000 engines in total, 1,000 of which are LEAP1C engines for the C919 aircraft (GE and Safran also make engines for Boeing and Airbus). It can be seen that if the ban takes effect, the company may lose one-fifth of its revenue in the Chinese market. Talking about the possible reverse engineering of its products, a company spokesperson pointed out that, first of all, it is not easy to imitate an aircraft engine - in addition to the design features, the materials required for production are also important. Furthermore, as GE and Safran point out, their products have been supplied to the Chinese market for many years, so if China wanted to do it, they would have started reverse engineering a long time ago. Aircraft equipped with GE and Safran engines are delivered worldwide. Therefore, in today's globalized world, it is impossible to control the technological development of other countries. Wang Zhimin said that all you can gain is lost sales revenue.
Wang Zhimin continued: "Including Airbus and Boeing aircraft, almost all large-scale high-precision manufacturing parts are produced all over the world. China also produces aircraft parts, but usually the core parts are produced in the country. At present, although China Domestic-made engines cannot yet meet comparable performance requirements, but I think this is just a matter of time. As a major emerging developing country, China has been working hard to move forward. With China’s investment in science and technology, it should not take too much time to reach the stage of independent research and development of engines.”
The main reason for technology companies that do not want to see Sino-US w88 friction is that if the supply of US products to the Chinese market is banned, China can still purchase similar products in other countries. American companies would lose revenue, meaning they would have less money to spend on research and development. Ultimately, as spokespeople for Intel, Dell, Nvidia and other technology companies have pointed out, they will lose their competitive advantage.
Perhaps, Trump finally realized this and decided to temporarily implement the ban on exports to China. With the upcoming election, economic development is the most important issue facing the US president. There are many anti-China hawks in both the Republican and Democratic parties. Now, the current president needs new talking points to attract voters' attention。
Original link:
http://sputniknews.cn/economics/202002191030685345/
