The American economy is increasingly reliant on digital trade, with Illinois businesses at the forefront of this trend. Over the past decade, Illinois companies have seen a 65% increase in exports, generating $28.3 billion in revenue and supporting over 141,000 jobs in 2022. Congressman Darin LaHood has been instrumental in positioning the United States as a global leader in the digital economy. However, U.S. Trade Representative Ambassador Katherine Tai's recent statement that the U.S. is no longer prioritizing strong digital trade rules on the global stage has raised concerns. Critics argue that this represents a fundamental misunderstanding of the importance of digital trade to the U.S. economy. The United States has historically held a trade surplus in services, with 70% of its services exports in 2022 being digitally-enabled. By failing to enforce current rules and undermining the future of rules-based trade systems, the U.S. risks losing its competitive edge in the digital economy [f3d11da7].
The Office of Trade Negotiations (OTN) in Taiwan has outlined its trade strategy, aiming to ensure Taiwan remains competitive, innovative, and responsible in the global economy. OTN has made significant progress in negotiations with the United States, the UK, and Canada, with a focus on areas such as labor, agriculture, environment, food security, and digital trade. Taiwan is also prioritizing its application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and is actively engaging with countries in Southeast Asia and South Asia through its New Southbound Policy. The OTN plans to deepen existing trade relationships, explore new trade agreements, and address global economic challenges in the future [110d4083].
Former President Trump's proposals to revoke China's MFN status and impose high tariffs on Chinese goods appears to be motivated by frustrations regarding trade since China's accession to the WTO. Japan should take a multi-track approach to pursuing WTO reform, WTO plurilateral agreements, and regional and bilateral FTAs. The CPTPP's role in spreading the rule of law is crucial. The global trade system has weathered challenges including US-China tensions, the pandemic, and ongoing wars. The malfunction of the WTO has added to the instability. Frustrations with China's exploitation of the current system include its failure to transition into a market-oriented economy and its state-led economic policies. The WTO's core functions have not been effective in addressing these issues. The US proposal to revoke China's MFN status could change the negotiating dynamics surrounding the WTO. Japan should actively pursue plurilateral agreements, join the MPIA, and strengthen FTAs with emerging economies. Japan should aim to reinstate the function of trade agreements in promoting market-oriented economic reforms and upholding the rule of law. Japan should work to preserve the effectiveness of the CPTPP and explore cooperation between the EU and the CPTPP. Japan should revitalize its economy and keep its products and technologies indispensable to the rest of the world. Japan plays a crucial role in safeguarding the rules-based order [1fcd4f74].
Americans' concerns about China's geopolitical threats and giant trade surpluses lack an effective voice for change. China threatens to invade Taiwan, which the U.S. promises to defend. The Philippines and the entire South Pacific region are at risk for China hegemony, which may lead to war. In 2023, China's merchandise trade surplus amounted to $832 billion. Empowering consumers to curb China's offensive geopolitical and economic behavior by clearly providing 'country of origin' (COO) information in internet product sales will require Federal Trade Commission rulemaking or congressional legislation mandating it. Armed with COO information, online shoppers can become effective participants in a global marketplace. Their purchases can positively influence U.S. allies' and other countries' ability to compete based on their reputations for fair labor standards, human rights protections, product qualities, and personal preferences. Americans could show disapproval of China's military threat and help correct the China trade imbalance by using COO information when shopping online. That information will not be furnished by Amazon, Walmart, and all internet retailers unless required by law [63840ca4] [7c8d6cd4].
Republican China hawks argue that China's rise is due to its 'totalitarian system and extraordinary organization,' but a more politically palatable theory has emerged: China's ascent was not a result of economic reforms or strategic planning, but rather the theft of intellectual property (I.P.). Claims that China has siphoned off $200 billion to $600 billion annually in I.P. have been widely reported, but a closer examination reveals that these figures are little more than speculative modeling. Reports by the U.S. International Trade Commission (USITC) and the Organization for Economic Cooperation and Development (OECD) are the linchpins of the fearmongering campaign against China, but their methodology is questionable and their estimates are based on guesswork. The I.P. allegedly stolen by China mostly consists of trademarks affixed to counterfeit high-fashion sneakers, watches, handbags, and other accessories, or copyrights on pirated music. The true driver behind China's technological advancement is not theft or coercion, but a natural process of discovery and learning. China's economic boom and tech triumphs are built on a blend of learned American innovation and a push toward greater economic freedom. Rather than gearing up for conflict, the article suggests championing and nurturing the entrepreneurial spirit that is part of China's DNA [6be2cb27].
A new study has introduced a method to estimate bilateral exports and imports for digital products using corporate revenue data of large digital firms. This method allows for estimates of digitally ordered and delivered trade involving digital goods, productized services, and digital intermediation fees. The study found that digital product exports are more spatially concentrated, have been growing faster, and can offset trade balance estimates. Countries that have decoupled economic growth from greenhouse gas emissions tend to have larger digital exports, and digital exports contribute positively to the complexity of economies. The dataset, method, and findings provide new insights into the impact of international trade in digital products [6a2e3605].