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Why Is the U.S. Surrendering to China On Digital Trade?

Posted on Monday, November 27, 2023
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by Outside Contributor
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41 Comments
China is the world's new science and technology powerhouse

Americans have come to expect to be No. 1 in technological innovation. We have also come to expect that we will defend our global leadership position in technology.

Yet, a recent decision by the U.S. Trade Representative to withdraw key digital trade proposals from negotiations at the World Trade Organization raises questions.

Is America still serious about its commitment to safeguarding its global technology leadership? It’s difficult to answer this question with any confidence.

The USTR’s withdrawal from digital trade negotiations among 90 WTO nations not only undermines America’s position in the global tech landscape but also strengthens the standing of some of our most antagonistic adversaries in the race for technological dominance — especially China. The implications extend beyond economic considerations, affecting the values that underpin the international digital landscape.

The three digital trade proposals that the USTR abandoned — promoting the free flow of data across borders, rejecting data localization requirements and prohibiting the forced transfer of software source codes — were crucial for maintaining America’s global leadership on technology principles and practices.

—The promotion of the free flow of data is fundamental to global innovation, fostering collaboration and driving the digital economy. When data flow is restricted, not only does it stifle America’s economic potential but it also concedes ground to nations that advocate for a closed, censored and controlled vision of the internet, in contrast to American democratic values.

—Data localization requirements — mandating that companies store data locally — pose significant challenges and create cybersecurity vulnerabilities. Such constraints provide rival countries with a strategic advantage, granting them direct access to customer data stored within their borders, potentially compromising sensitive information, and preventing fraud detection and hindering cybersecurity across borders.

—The prohibition of forced transfers of software source codes is critical in preventing intellectual property theft and the unauthorized replication of original software. China has a track record of stealing $600 billion annually in intellectual property from the United States. Forced transfers of software source codes would make it even easier for China to acquire American trade secrets, facilitating rapid reverse engineering and potentially eroding the unique innovations of U.S. technology.

Republicans and Democrats in Congress have expressed dismay over the USTR’s decision. Senators Ron Wyden, D-Oregon, and Mike Crapo, R-Idaho, decried the fact that walking away from these negotiations not only abandons democratic allies but also creates a void that China is more than willing to fill.

It’s as if the USTR has raised a white flag and surrendered.

What’s most troubling is the apparent short-sightedness of withdrawing from these key digital trade proposals.

Does the United States still have the goal and the motivation to be the world’s leader on technology?

Wyden called the USTR’s withdrawal “a win for China, plain and simple.”

Crapo said, “We have warned for years that either the United States would write the rules for digital trade or China would. Now, the Biden administration has decided to give China the pen.”

Indeed, China has been trying for years to write the rules, and, unlike the United States, China has a vision for writing the rules well into the future.

In 2022, China laid out specific implementation roadmaps (an “Action Plan”) to flesh out its National Standardization Development Outline. The Action Plan provides a look into China’s highly strategic, long-term approach to becoming the authority on technical standards.

Giving further insight into China’s determination to play the long game, the “China Standards 2035” strategy was launched in 2018, creating a blueprint for China and its tech companies to set global standards for emerging technologies such as the Internet of Things, artificial intelligence and 5G.

The Action Plan emphasizes China’s desire to have greater involvement in international standard-setting bodies. Take, for example, the International Organization for Standardization and International Electrotechnical Commission, which are international standard-setting bodies that focus on IT and communications technology. The number of China’s ISO and IEC proposals has grown by 20 percent yearly. This shows China’s determination to gain long-term influence in standard-setting as well as in system design and rulemaking. Clearly, China’s goal is to assume the prime position in the global technology market.

At a time when one of our greatest global adversaries — a country with objectionable moral standards, a provocative military stance and antagonistic economic intentions — is making strides to gain technological and economic dominance, we must recognize that we are in a marathon to maintain American preeminence in global technology. 

The USTR should not allow foreign adversaries to overtake us.

Zach Sirek is a communications intern at Trade Alliance to Promote Prosperity.

Reprinted with Permission from DC Journal – By Zach Sirek

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PaulE
PaulE
4 months ago

Well considering that we have a POTUS that has been bought and paid for by multiple foreign actors and countries, as well as most of his administration is made up of people who think the CCP and communism is simply wonderful and they want to bring the same authoritarian style governance here to the United States, our actions centered around digital trade make perfect sense. Why would we defend ourselves from a digital perspective, when the goal of the Democrat Party and the NWO types is to cede control of everything to China by 2035? Again, this administration’s action makes perfect sense in supporting that goal.

The objective of this administration is to elevate China and other socialist or communist led countries to equal and then surpass the United States on all fronts. That has been the goal of the Democrat Party for quite a number of years now and should be obvious to anyone who has paid attention to what has been going on. That so many authors of these articles published here refuse to state the obvious truth to the readership and continue to expect the actions of this administrations to suddenly reflect the best long-term interests of the United States, when that is the farthest thing from this administration’s mindset, does no one here any good.

David Millikan
David Millikan
4 months ago

Dictator Beijing biden like Obama both SURRENDERED to Terrorist and at the same time PAID them and both gave Terrorist our military equipment and weapons. So it’s no surprise that Dictator Beijing biden would bow down like Obama to Communist China and SURRENDER.

Janis Seward
Janis Seward
4 months ago

Because our so-called “leaders” are on a fast track to make America a totalitarian government. Easy to see …. but you have to open your eyes.

anna hubert
anna hubert
4 months ago

Without our technology and know how China still would be sloshing around in the rice paddies We’ braided our own crop This deliberate blindness to the facts is beyond understanding After the attack on New York nothing was done in the department of potential and real danger of terrorism except p***footing around the issue and harassment of Americans The “security” measures at the airports what a farce There has to be a reason for this deliberate neglect of duty and chaos at the non existent border and it sure is not America first

Nick
Nick
4 months ago

Joe Biden is a graduate student of the Neville Chamberlain School of negotiation. Not only does he not know what he’s doing he has no idea where he is. And he is running this country into the ground. If we don’t get a president with some strength and some knowledge in office, Venezuela is going to overtake us. We already have to buy petroleum from them because we won’t produce our own. This country is dumping in excess of $300 billion dollars to fix a non-existent problem. All they want is the power that comes with control higher taxes and more regulation. Anyone that believes that the government can change the climate of the world is beyond delusional

Jeff
Jeff
4 months ago

Do you really need to ask the question? Joe Biden is owned by China. He has no alliance to the USA. He has been bought and paid for.

Jeri
Jeri
4 months ago

The US is not surrendering to China, the FJB mob in the WH is surrendering to China due to blackmail by the Chinese to keep quiet the Biden mob grifting. And…it truly is that simple.

Juana
Juana
4 months ago

Biden is selling the digital technology to China because
He is surrendering the digital technology to China for profit and all technology to China
Biden never thought he would be found out.
Biden thought that the Chinese were so smart as to hide his treason act of selling our technology.
And the allowed of devices to spy inside our country like the balloons ???? he has allowed to fly in our skies.
That is why they kept on denying when Biden himself sold the to Chinese the ability of the balloon ???? to fly from one end of our country to the other end.
All across where all of our technology is located.
We always thought that we would have a world war to loose to
The prophetic sayings of our 4 fathers was that we will fall from treason acts with in
From somebody else than our usurper president
Why usurper because when Pelosi force the coronation ???? of Biden on January 6 that because we needed a president
We didn’t need a president as President Trump was our president for another month or so.
Why coronation ???? because this government corrupt didn’t want to hear the will of the people and stole the votes etc… in ordered to crown ???? Biden themselves because they talk of democracy all the time when they themselves do not want to fallow a democracy the way they put people in power that will do their dirty work like Biden is doing.

Joanne4justice
Joanne4justice
4 months ago

Why is this happening? It is perpetuated by JACKASS Joe and comrades!!!

Glen
Glen
4 months ago

That meeting in San Fran. That was Biden getting his orders. So I am wondering: Why is anyone surprised by this and many other decisions being made by the Biden Regime. according to the lamestream media, we had a free and fair election in 2020 and the people got what they wanted? What I’m really wondering about is how the globalist (World Economic Forum) are going to control Russia, China and North Korea in their bright new global one world government?

RICHARD MEADE
RICHARD MEADE
4 months ago

THE U.S.A. HAD BETTER START TREATING CHINA AND OTHER HOSTEL COUNTRIES AS THE “ENEMY”, OR ELSE WE WILL BE TAKEN OVER!!!!

Stephen Russell
Stephen Russell
4 months ago

China has the upper hand on trade via spying & contracts

Juana Contreras-Mendoza
Juana Contreras-Mendoza
4 months ago

Biden is selling the digital technology to China because
He is surrendering the digital technology to China for profit and all technology to China
Biden never thought he would be found out.
Biden thought that the Chinese were so smart as to hide his treason act of selling our technology.
And the allowed of devices to spy inside our country like the balloons he has allowed to fly in our skies.
That is why they kept on denying when Biden himself sold the to Chinese the ability of the balloon to fly from one end of our country to the other end.
All across where all of our technology is located.
We always thought that we would have a world war to loose to
The prophetic sayings of our 4 fathers was that we will fall from treason acts with in
From somebody else than our usurper president
Why usurper because when Pelosi force the coronation of Biden on January 6 that because we needed a president
We didn’t need a president as President Trump was our president for another month or so.
Why coronation because this government corrupt didn’t want to hear the will of the people and stole the votes etc… in ordered to crown Biden themselves because they talk of democracy all the time when they themselves do not want to fallow a democracy the way they put people in power that will do their dirty work like Biden is doing.

Thinking
Thinking
4 months ago

The dems do not want free flow of ideas not in trade or on the social platform. They want total control over their people and thereby the businesses as well.
Marxism can only be attained by total control of the masses.

Lee
Lee
4 months ago

America First!!!

Tim Toroian
Tim Toroian
4 months ago

Because people in this country are as stupid as I feared, the 2022 elections are also proof. I live in the state that turned the Senate into a stroke recovery ward and elected a DEAD guy to the state legislature.

BEA
BEA
4 months ago

The only thing that will help to fix all of this, is smaller government. BIG government is like a cancer. Look anywhere and you can see it. And the Biden administration is stupid, so that doesn’t help the American taxpayer.

Marilyn Fenner
Marilyn Fenner
4 months ago

Because we have a lying, piece of crap as a President !

A Voter
A Voter
4 months ago

Because Beijing Biden is a wholly owned subsidiary of Xi Jinping Hunter collected the buyout, now Joe Jinping is providing the payoff. Just like he is doing in the Ukraine.

John Shipway
John Shipway
4 months ago

The tone of this article sickens me. Too many people in the US look at everything as being a potential tool for conflict. The US no longer actually competes, it attempts to conquer and yet look at our success rate in such attempts……….think “zilch”.
Why not compete and perhaps negotiate for true open markets and trade. If say China makes a new digital super duper mousetrap, work and see if the US can make a new digital super duper mousetrap better or even cheaper so as to………COMPETE.
Instead we will most likely issue sanctions, like an ostrich with its head in the sand but with one hand on a gun.
We coulda been a great nation but instead we became a failed tyranny regarding markets and in general everything else on an international scale.

Robert Zuccaro
Robert Zuccaro
4 months ago

I dunno but check Joe’s checking account for more “loans” from his brother… in Yuan!

Granny26
Granny26
4 months ago

Why? Because Butthead Biden is in bed with China. He could care less about America or Americans. He needs to GO.

Joanne4justice
Joanne4justice
4 months ago

Red China ???????? controls the one sided trade between USA and their country. Trade cargo ships have have transported huge loads of merchandise laden ships to US and they return EMPTY!!!! This has been happening for DECADES!!!

VET
VET
4 months ago

Because Joe Biden owes China for all the money they sent to the Biden Mafia!!!!!!!

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