American legislators are missing the new calculus for business in the 21st century. They throw out historically loaded concepts like supporting free trade and tax cuts for business that miss the point in the new era of state sponsored capitalism and strategic investment. This article from the New York Times, Solar Panel Maker Moves Work to China, raises important issues regarding the generally accepted rules and principles surrounding free trade.
Once again China, and its socialist/capitalist hybrid, is skirting, or well rewriting, the rules of international trade in its favor with Western governments feckless in responding. At issue is not merely currency manipulation but all the important aspects of free international trade including mercantilism, dumping, tariffs, intellectual property rights and state interference in private investment.
With Chinese Premier Hu Jintao visiting the US next week it would be more appropriate for the new Republican House to begin the session not with a debate about "Repealing the Job-Killing Health Care Law Act", the actual title of the bil. Rather the most important issue with the greatest impact on growth and jobs in America today, the unfair trade practices in China and what to do about it.
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