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United States' view: Structure of China's political economic system[edit]
The US claims, with characteristic communist party directed planned economy, Chinese state-owned enterprises and crony capitalism princelings gain the most benefits in most activities including the Belt and Road Initiative and Made in China 2025.[20][21][22][23][24] The U.S., Japan, Canada, Mexico, E.U. countries do not recognize China as a market economy, alleging market distortions.[25][26][27] Economist Irwin Stelzer states China's centrally directed economy with its goal to preserve communist party control of the politics and economy is relevant to U.S. trade policy.[28] Political scientist and former White House national security officer Aaron Friedberg has also said the communist party regime has expanded its use of state-directed, market-distorting, mercantilist policies, especially since 2008.[29]The 2018 Congressional hearing "U.S. Tools to Address Chinese Market Distortions" discussed how "the Party leads everything" doctrine makes China’s economy hard for the trading rules to deal with and results in many U.S. businesses bowing to pressure even though their decisions may jeopardize the future of their companies and the U.S. economy as a whole.[30] The structural problem of the Chinese communist party’s fundamental opposition to free-market capitalism and fair competition is claimed by US to be the root of U.S.-China economic tensions.[31]
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So, as a result American Companies, American Workers, American inventors are all harmed every day by the corrupt Chinese system.
The only way I see to deal with all this is to stop trading with China and form blocks of trading partners that DO practice Free market policies instead.
By Isolating China like this economically, I think this might be the ONLY way to Change the Chinese System to be a Free market economy. However, this might take 100 or more years to accomplish so it would be a long term goal.
But, other than shunning trade with China completely I see no other way to bring about the changes needed to have a free market economy functioning worldwide.
But, this too could provoke some kind of warlike response from China as well.
Or more likely the Chinese simply won't negotiate with the U.S. or make temporary deals that they secretly will only break in time.
So, because of all this likely the only way to stop China from harming the U.S. is to stop trading with them. Is this likely to happen. No.
So, this problem is likely to get 100 times worse over time because Trump has only made the problem 100 times worse for now. What Trump has done is like taking a stick to a hornet's nest. You are only going to get stung doing that which is exactly what is happening to the U.S. economy right now.
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