Western Capital Flee Communist China

Rising costs, government abuse of policies, the Chinese Communist Party (CCP) virus pandemic control measures and war sanctions have prompted Japanese and Western capital to flee the Communist China. All comments from the United States and Europe indicate a tendency to decouple from the Communist China.
The United States and European Union countries want to pass legislation to restrict investment in the Communist China, especially the procurement in the nation. The proximate cause is the lockdown caused by the zero-COVID policy in Shanghai and Beijing, which has made production in Communist China difficult and expensive, especially transportation for both domestic and abroad.
On top of this, the Chinese Communist Party’s theft of Western patents and copyrights. Foreign companies in Communist China have long complained that foreign companies must have a Communist China partner with whom they must share technology and trade secrets. These foreign companies complained about the blatant theft by CCP agents, but the CCP government did not take any action.
In January 2020, when the CCP and the Trump administration signed the “phase one” trade agreement, the CCP Government promised to simplify the procedures for foreign companies to file complaints about patents and other such theft. But since then, it has become clear that the CCP has no intention of fulfilling its promises. Through a court ruling, the Communist China companies were allowed to escape responsibility.
Due to wolf warrior diplomacy, the CCP threatened to embargo rare earths from the United States, Japan and other countries. This arbitrary and unruly behavior of the CCP has caused great harm to trading partners. Comparing with other Asian economies, Communist China has lost its advantage of low-cost labor. Vietnam has long attracted most of the low cost shoes and clothing manufacturing from Communist China and exported them to Europe and the United States. While the CCP virus pandemic has slowed down some of the wage growth in Communist China, at the same time, the lockdown has significantly increased shipping and procurement costs.

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MOS English Team – Wenqin
Design&editor: HBamboo(昆仑竹)

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