Senator Rubio Addresses Concerns of ‘Made in China 2025’

Kitty Wang
By Kitty Wang
March 11, 2019USshare
Senator Rubio Addresses Concerns of ‘Made in China 2025’
Sen. Marco Rubio (R-FL) speaks to reporters following a closed briefing on intelligence matters on Capitol Hill in Washington, on Dec. 4, 2018. (Zach Gibson/Getty Images)

WASHINGTON—Senator Marco Rubio (R-Fla.), Chairman of the Senate Committee on Small Business and Entrepreneurship, recently addressed concerns about the threats to American small businesses, especially by those high value-added industry manufacturers who are part of the “Made in China 2025” plan, a Chinese government industrial policy initiative.

“Their government has a plan,” said Rubio. “It’s ‘Made in China 2025.’ It is a plan for industrial dominance in ten key technological sectors, some of which the U.S. is the current global leader. For Chinese companies to meet the production targets the plan sets out, their success will have to be at the expense of the U.S.”

In a recent hearing of the Senate Small Business Committee, Senator Rubio pointed out that the failure of the Chinese Communist Party (CCP) to adhere to international standards after joining the World Trade Organization (WTO) has caused many small and medium-sized manufacturing companies in the United States to lose many job opportunities.

Lost Opportunities

Now, regarding the “Made in China 2025” plan, if the United States does not adopt comprehensive policy measures, this threat will reappear, especially in many high value-added industries, such as Information Technology and aerospace equipment.

Marco Rubio at a hearing on Human Rights
Sen. Marco Rubio (R-FL) at a hearing of the Congressional-Executive Commission on Human Rights on Capitol Hill in Washington, on March 1, 2017. (Aaron P. Bernstein/Getty Images)

“Through this whole-of-society strategy, the Chinese government attempts to steal, and subsidize, and ultimately compete its way to the top of the global production value chain,” said Rubio. “In some, they aim to supplant American industrial leadership, by any means necessary, including illegal ones.”

Illegal Means

The Committee on Small Business and Entrepreneurship recently released a report titled “Made in China 2025 and the Future of American Industry.” Senator Ben Cardin pointed out that the CCP mainly relies on four means to illegally acquire U.S. technology, including restrictions on U.S. investment, forced technology transfers, government support for acquiring U.S. technology companies, and state-sponsored cyber theft.

The Trump administration previously claimed that the “Made in China 2025” plan was protectionism and seriously threatened fair trade. White House chief economic adviser Larry Kudlow recently said that the United States and China are about to reach a “historic” trade agreement, in which China will pledge to “de-emphasize” its plans to dominate in emerging technologies outlined in its “Made in China 2025” plan.

Bonnie Glaser, director of the China Power Project, Center for Strategic and International Studies suggested the policy is still in the works.

“I suspect that ‘Made in China 2025’ is just been covered up,” said Glaser. “It’s gone into the internal system. And essentially, if there is any changes made, they will be cosmetic or superficial, but the policy itself will remain intact.”

“We do seek fairness and balance in our relationship,” said Rubio. “We certainly can’t allow their industrial policy to take advantage of the United States, and our industry and our jobs.”

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