New Op-ed: Want business certainty? Get out of China
Want business certainty? Get out of China
Big business wanted certainty. President Trump just gave it to them:
China is no place to do business. Get out now.
To those who've been saying we need to make a deal, any deal, with China to restore certainty, the president made certain this administration will not surrender to China's continuing assault on the American people and our free enterprise system.
He made certain we will not do as previous administrations have done and look the other way as the Chinese Communist Party pumps deadly drugs into our country, dumps deliberately underpriced goods into our market to drive American producers into bankruptcy, steals our technology and deploys government-owned enterprises to compete against American companies that play by the rules.
President Trump made certain he will not allow the working people of America to have their livelihoods and communities destroyed by China's predatory trade practices.
For business looking for certainty, he made it clear imports from China will no longer enjoy the preferable tariff treatment that encouraged our biggest corporations to abandon the United States and make Asia's Communist giant their sole supplier.
And by serving notice to companies to move out of China, President Trump signaled he has no stomach for excuses from global corporations that have profited handsomely off of the cheap labor and subsidies China's Communist dictators have provided them.
President Trump's message to great American companies: It's time to put America First.
Here's another certainty: China wants to take over the world. To achieve this goal it is waging economic warfare against the U.S.
Just as China targets its tariffs to inflict maximum damage on farmers, a key political constituency, its trade policy targets American industry for extinction.
It deliberately dumps products priced below the cost of production on the American market to drive American competitors into bankruptcy and make our key industries entirely dependent on China.
The oil services industry is a prime example.
The manufacturing of equipment crucial to American energy dominance is done by scores of small, independent, family-run businesses that provide good-paying jobs to thousands.
They are all at risk because China has been dumping oil drilling equipment in the U.S. at prices so low American manufacturers can't compete.
AmTex Machine Products Inc. is one of these independently owned small businesses. It produces the couplings for the specialized pipes used in oil and gas drilling.
Cheap imports from Chinese producers have taken over the market for the couplings.
They are being sold at prices lower than the cost of the raw steel that goes into them.
In three years, Chinese imports doubled. This has crippled American manufacturers and destroyed thousands of good-paying American jobs.
AmTex now has fewer than half the employees it had before the dumping began.
And it's not just low-end pipe fixtures. China now exports knock-offs of the more specialized equipment we use in the U.S. and sell to the rest of the world.
The same way it has decimated textiles, furniture, electronics and so many of our other industries, China is out to eliminate our oil drilling equipment industry.
If it succeeds, Beijing will control the production of the energy essential to America's economy and national security.
That's a certainty.
And here's another one:
We can't let that happen. We can stop it by increasing the anti-dumping tariffs on Chinese oil drilling equipment.
-Curtis Ellis is Senior Policy Director for America First Policies.