Critics have denounced plans to impose tariffs on Chinese goods, says Scott Paul, but this is one
instance “when the White House should actually be applauded”. It’s about time we took a stand
against China’s theft of our hard-earned intellectual property (IP). Consider the numbers. IPintensive
industries in the US support about 45.5 million jobs, represent more than 38% of GDP
and account for more than half of our exports. We have, meanwhile, amassed more than $4.3trn in
merchandise trade deficits with China since 2001. Much of that is “the result of China’s protectionist
market policies – of which IP theft is part and parcel”. None of this is any secret. Barack Obama
waged a long campaign to dissuade Beijing from “either requiring American companies to enter
joint partnerships with Chinese firms (and hand over proprietary knowledge) as a condition of
market access, or from its outright support of China-based hacking groups”. The campaign – a
mixture of carrots and sticks – was modestly successful, but China has since reverted to its bad
old ways. America can’t just sit back and let its innovation base be hollowed out like this by a
competitor. “We need to be honest with ourselves: now is the time for more stick.”
