"Since joining the World Trade Organization in 2001, China has scrupulously adhered to its WTO commitments and abided by the decisions of its judges. Yet the Chinese economy may be fundamentally incompatible with the spirit of any rules-based trading system because the Chinese party-state has enormous power to tell companies what to do. Communist Party cells are embedded in most Chinese companies, even the subsidiaries of non-Chinese firms. Executives at many large companies, including those without direct government ownership, are party members, which makes them eligible for promotions and favors—and vulnerable to party discipline.Even those who are not party members often attempt to affiliate with Beijing’s priorities. The legal academics Curtis J. Milhaupt and Wentong Zheng “identified ninety-five out of the top one hundred private firms and eight out of the top ten Internet firms whose founder or de facto controller is currently or formerly a member of central or local party-state organizations such as People’s Congresses and People’s Political Consultative Conferences.” Regulators can and do bring in executives for interviews on any subject that concerns them. The Chinese financial system is dominated by state-owned entities, which gives the party leverage to help companies that promote its objectives and to punish those that do not. Milhaupt and Zheng note that private firms have “little autonomy from discretionary state intervention in business judgment” because “the state exercises significant extra-legal control rights over private firms.”In this system, there is little need for tariffs to direct domestic demand toward domestic production. Executives can simply be told to pick Chinese suppliers over foreign ones."
quinta-feira, dezembro 31, 2020
Para reflexão
Trecho retirado de “Trade Wars Are Class Wars” de Matthew C. Klein.
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