China isn't playing fair.
From the Los Angeles Times earlier this week:
The Obama administration today demonstrated its intent to be tougher on major global trading partners, filing a complaint against China for restricting access to raw materials important for U.S. producers of steel, aluminum and chemicals.
The request to the World Trade Organization to begin dispute resolution talks is the first trade complaint by the administration after President Obama promised more aggressive action on such issues during the campaign. It accuses China of placing unfair export restraints on nine materials that it is a major producer of, including coke, a key component to making steel.
...
The restrictions have driven up the prices of those materials for U.S. manufacturers while reducing the costs to Chinese companies, said U.S. Trade Representative Ron Kirk.
No surprise on this ...
China's economic policy is designed to promote the expansion of its industry and an expansion of wealth generally for the country. China continues to violate its trade agreements on a number of fronts, including export restraints.
At the same time, it is moving very aggressively to acquire companies outside of China that produce raw materials -- like the proposed purchase of Canada's Addax Petroleum by a subsidiary of the state-owned oil company -- or is moving to arrange deals with second countries that give it a lock on natural resources supply.
So, sure ...
Who can blame China for acting in its best interests?
Not me.
What I do not understand is why the U.S. is not doing the same.
Our country has no industrial policy at all, except for "Those Jobs Are Gone and They Are Never Coming Back!"
We don't have a trade policy, except for "FREE TRADE! THE GLOBAL ECONOMY!"
And our economic policy is simply to scream, "FREE MARKETS!" like some sort of imbecilic child.
The contest with China looks increasingly like one that we're destined to lose.
How can we compete against a country that cares about its future?