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by jianshen 2149 days ago
What is his motivation for this right now? Is it just the distraction of the week or was there a specific incident recently that triggered this?
2 comments

There’s likely a lot that is not and will never be covered in the news that the NSA and CIA know. I’m sure they look at our commentary on here, with 1% of the geopolitical information, and chuckle.
they look at your commentary and chuckle. you guys believe in NSA-CIA like people believe in god
They can chuckle because this is a dream come true for them.

These acquisitions will massively enhance the surveillance capabilities of the NSA and CIA.

Do you really think this has anything to do with national security? Don't be naive. Trump hasn't listened to the CIA or the NSA in 3½ years, he's not starting now. This is 100% pure political grandstanding and retaliation for the Tulsa rally. Assuming otherwise is giving way, way, way too much credit.
One factor is that China has had a Firewall blocking all foreign digital competitors and information sources for a long time.
That’s the behaviour of a dictatorship country. And now America is being like one. This is probably what China wants for America.
America primarily sells technology. China primarily sells goods.

China is totally free to sell goods into America. China has blockaded America's technology, unless the companies agree to essentially hand over IP so China can steal it (Huawei operated a cash bonus scheme for stolen IP, according to the DoJ).

Does this sound like "free trade"?

Not just that, even companies willing to play ball and censor information for the local laws end up being operated with local partners like Apple's iCloud (run by AIPO Cloud (Guizhou) Technology Co. Ltd).
> hand over IP so China can steal it (Huawei operated a cash bonus scheme for stolen IP

Which American company's 5G technology did huawei steal from?

I don't think Huawei is being accused of stealing 5G technology.

It's accused of being an espionage arm of the CCP and that having it control communications backbone infrastructure is a bad idea.

> I don't think Huawei is being accused of stealing 5G technology.

That too:

https://www.bloomberg.com/news/features/2020-07-01/did-china...

Has TikTok stolen any IP?
Is Facebook available in mainland China? YouTube? Google? Gmail?
They were available until they stopped complying with China’s data and information laws. They chose to leave.
Don't know why you're getting downvoted but it is lopsided trade.
Lopsided how? Because the US has a trade deficit with China? That's not "lopsided". That just means that the US buys more stuff from China than China buys from the US.

Trump introduced tariffs. They increased costs for US consumers (they pay the tariffs). China lost some exports. In the meantime, China decided to buy soybeans from other nations. The US lost a lot more in exports, requiring government bailouts of farmers. Thus further increased costs to US consumers and taxpayers.

Given this increased sovereign risk of de-facto nationalisation of a foreign owned US company (TikTok et al), why should other foreigners invest in the US?

As a reminder, the US has a net foreign trade deficit of USD400B for 2020 so far. So the US buys $400B more than it sells.

No, they do not pay the tariffs.

When a marketplace transaction is taxed, it really doesn't matter which party has to hand over the money. The buyer and seller will split the cost of the tax according to elasticity. Consider a transaction that is worth $100 in a tax-free situation, using numbers relevant to the US/China tariffs:

Without tax: $100 is transferred from buyer to seller.

Buyer hands over money: The buyer pays $30 to government and $76 to the seller, for a total of $106.

Seller hands over money: The buyer pays that $106 to the seller, who then pays $30 to the government. The seller keeps $76.

You might wonder what would motivate the Chinese seller to reduce his price. He has unavoidable costs like loans. Keeping a factory partially idle is painful. There are fixed costs. He doesn't have the monopoly power to dictate a selling price. He can't force the buyer to buy.

That don't abide by Chinese law. There's a reason Bing and Skype are still allowed in China. The US government has no proof of TikTok or WeChat violating any US laws that other American companies haven't.
All companies in China are required to do whatever the CCP tells them to do. If you have more than 100 employees, you must have a member of the CCP to provide oversight. Zhang Zhiming, the CEO of Byte Dance publicly grovels to the CCP. Here is his public statement: https://www.youtube.com/watch?v=BZa0FGThXak&t=5m4s
That's exactly the opposite of a specific recent incident. :)