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Effects of China's Software Policy on World Economy?
guptaparesh asks: "The Chinese government is currently engaged in a comprehensive overhaul of its procurement policies and regulations. These regulations would ban non-Chinese firms from selling software to the Chinese government. Given that how much trade all the countries in the world are engaged in with China, isn't this a unfair trade move by the Chinese government?" A better question would be how this might affect the worldwide economy, particularly that of the U.S. and China. What benefits and drawbacks may China see as a result of this new policy? What steps might the U.S. take to attempt to counter it?
It's a Chinese national security issue. The CCP does not trust software outside of it's own country for fear of hidden backdoors. They think Microsoft may have had the Pentagon place backdoors into Windows to be used in times of war.
Life is not for the lazy.
China keeps giving themselvs huge rubs on the back and anyone who tries to move in on it gets a kick in the groin.
This is exactly the same as every other country (look who gets all the contracts in Iraq for example), the only "real" difference is we all know "china is evil" and America/Europe/Whatever you like near the Atlantic is "good" and "helping the industry".
So China's doing nothing different from anyone else. If anything being "shut in" may even help Linux if Microsoft piss off the wrong government member.
I like muppets.
China is a huge trade manipulator (if not the biggest in the world). However, lets not pretend that we're innocent here, with our monstrous ag. subsidies. Furthermore, we violated the same rule we're now faulting China for in Iraq (only allowing bidding from COW countries; all government bidding on non-sensitive projects, by WTO rules, is to be open to any country)
Freeze Ray. Tell your friends.
John Snow (the U.S. Treasury Secretary) fired a warning shot [iht.com] at China's currency fixing policies. Intellectual properties concerns, and trade issues like the one cited in TFA are also commonly voiced from the adminstration.
But with the trade deficit with China and budget deficit being funded by China, China is the one who holds the best cards in the coming tradewar that recent headlines hint at.
If China stops buying US bonds, or floods the market with what they already own, the US economy is screwed.
I think it is kinda funny that John Snow is making demands to China after getting so many loans from the Bank of China.
If I am going to bring legal action against someone, I am not going to go borrow money from them first - especially if I can't pay it back.
This pertains particularly to discussions within the U.S. about the direction of our economy.
As more and more manufacturing jobs, and lower end service jobs (New York City parking tickets processed in India?!) have moved abroad, the continued argument, particularly from those fostering and benefiting from the outsourcing, has been that the U.S. will become *the* place for high tech, high value jobs. We'll "lead the world" in this regard, or some such.
What was obvious to some is now becoming apparent in the general media. There's nothing special about these "high end" jobs that requires they be done here. Nothing other than our legal system and established tradition of rights and responsibilities particularly with regard to contract law.
As other societies advance, there's no reason for them to hire our services, at our significantly higher cost, when they have native talent or talent accessible in other countries that is equally well educated and equally capable.
Other societies have been busy building up that talent, and they are attempting to address the legal concerns. We're getting closer to the tipping point, where the U.S. becomes largely obsolete.
Largely obsolete, except for a lot of warships, planes, and nuclear warheads. Beware: That way lies overt fascism.
Why complain about these things when America already does something similar? Perhaps Americans would like to demonstrate a huge open market by letting more foreign companys bid for defence contracts. I don't think the likes of Boeing or Lockheed Martin will do well with real competition though, will they?