Haynes and Boone's Newsroom
The Wall Street Journal Letter to the Editor: Say No to a U.S.-China Trade War
George H. Wang
Regarding Alisa Newman Hood's "American Heads in the Shale About China" (op-ed, Jan. 5), Congress should look favorably on the investment by Chinese firms in U.S. shale plays. With the vast expansion of shale gas reserves and production in recent years, U.S. prices have tumbled, but prices in Asia have remained stable. This is good for the American consumer and bad for the producer.
Ms. Hood's view that the U.S. should exert pressure on Beijing for the benefit of American companies is shortsighted and demonstrates what is fast becoming a parochial mentality in America. U.S. protectionism will not work and is not being tolerated by China.
China and other Eastern societies do not react well to ultimatums and demands, and Americans need to better appreciate the cultural differences between the East and the West. For example, within a few weeks after the U.S.'s recent move to seek trade relief against Chinese exportation of solar panels, Beijing slapped duties on U.S. car exports, the granddaddy of the American manufacturing industry. And, when the U.S. forced Huawei to divest its acquisition of assets of 3Leaf Systems because of alleged U.S security concerns under its CFIUS legislation, senior Chinese officials criticized the lack of transparency in how foreign investment is investigated. No wonder that China adopted its own version of CFIUS in February of last year.
Excerpt from The Wall Street Journal, Jan. 31, 2012. To view the full article, click here.