In the short span of the 21st century, the world’s two major powers, the United States and China, have inexplicably moved toward a showdown. This evolved from a commercial competition to something more akin to perpetual non-kinetic warfare. What does this mean for American business doing business in and with China? For this special 5-part blog post series, I visited with Brandon Daniels, CEO and President of Exiger, to explore various issues such as real risk, supply chain, exports, cyber attacks and IP theft from a business perspective and to give compliance and business leaders their views on what you can do to not only prepare your company, but also protect it. In Part III, we examine the export issues of US companies and the rebalancing of the global economy.
The US exported $149,000,000,000 to China in 2021, but do trade deficits still matter in this new era of economic conflict? The US-China conflict is intensifying, and as a result, businesses that export to China are feeling the strain. What happens when your biggest customer is no longer available? How do you go about finding new markets and renewing customers? In this post, we explore the delicate balance between the US-China relationship and the tools US businesses need to protect their intellectual property and goods from Chinese counterfeiting.
What are some of the steps you can take regarding export issues:
- Determine what to buy and sell in China
- Protect intellectual property
- Create a rebalanced global economy through diplomatic efforts with allies and partners.
- Determine what to buy and sell in China
When considering buying and selling goods to and from China, it is important to consider the potential risks and rewards associated with the transaction. There are several factors to consider when evaluating the potential for a successful trade relationship with China. First, companies must consider the intellectual property rights associated with the goods being bought or sold. It is important to ensure that any goods exported to China are not subject to an export control classification, as China does not always respect intellectual property laws. There is a large counterfeiting market in China and companies should be aware of the potential for counterfeiting of their products. Finally, companies should be aware of the imbalance in trade between the United States and China and be sure to protect their economic interests while also respecting the rights of their customers. By considering these factors and ensuring that their business practices are in line with their countries’ trade policies, companies can establish successful and mutually beneficial trade relationships with China.
- Protect intellectual property
Protecting intellectual property is essential to maintaining the success of businesses and preventing the theft or misuse of valuable information. Companies should take steps to ensure that their intellectual property is secure, both internally and externally. Internally, companies should establish policies and procedures to ensure that only authorized personnel have access to sensitive information and that all data is kept secure. Companies must also implement safeguards such as encryption and firewalls to protect their data. Externally, companies must take steps to protect their intellectual property from copying or theft. This may include applying for patents or trademarks of products or services. Companies should also investigate the laws and regulations in the countries to which they are exporting and ensure that their intellectual property is adequately protected under those laws. In addition, companies should consider signing contracts with their partners that protect their intellectual property and should take steps to monitor the use of their intellectual property to ensure that it is not misused.
- Creating a rebalanced global economy
To create a rebalanced global economy through diplomatic efforts between the US, its allies and partners, it is important to start by forming a coalition of like-minded countries. This coalition should focus on building and maintaining economic ties between each other, as well as coming together to develop new economic opportunities and innovations. The United States must also work closely with its allies and partners to protect its intellectual property, increase transparency, and prevent China from taking advantage of any economic imbalances.
To ensure a successful rebalancing of the global economy, the US and its allies must focus on developing diplomatic solutions to their problems with China. This means engaging in dialogue with them, negotiating trade agreements and forming coalitions of like-minded countries who are willing to work together to create a more balanced global economy. The United States should focus on strengthening its economic ties with its allies and partners, and on developing new economic opportunities and innovations. Finally, it is important that the US and its allies continuously monitor and protect their intellectual property, as well as increase transparency in the global economic system. By doing so, China will not be able to take advantage of any economic imbalance.
The US-China conflict is an ever-evolving and complex situation, but by understanding the implications of the conflict, businesses can take steps to protect their intellectual property and goods from Chinese counterfeiting and create a rebalanced global economy through diplomatic efforts with allies and partners. With the right strategies and precautions in place, businesses can remain competitive in the global market and continue to engage in global trade. With the right guidance and action, we can all strive to create a more sustainable and prosperous global economy.
For a deeper dive into these issues, check out the 5-part podcast series with Tom Fox and Brandon Daniels, here.
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