Dig out the so-called threat from China's competitiveness Why did the United States put forward the concept of "neutrality in competition"? What "external factors" have the competition been disturbed? How does "competitive neutrality" rule out "internal factors" interference? After investigating these issues, the reporter found that in the past six months or more, Hormats has mentioned "competitive neutrality" on several occasions, and his important purpose of proposing this concept is to "cope with the challenge of the Chinese model."
There is a subtext of proposing â€œcompetitive neutralityâ€, which means that the Chinese model has constituted a direct and major threat to the economic, security, and world influence of the United States and the international economic order. â€œNeutral neutralityâ€ will make Chinaâ€™s state-owned enterprises no longer responsible for the governmentâ€™s Various links and special competitive advantages.
Hormats once said that after the end of the Cold War, companies backed by the state, such as state-owned enterprises and sovereign funds, have entered the market and have become increasingly competitive. They have become powerful competitors in the world, and their speed of development is in international finance. After the crisis became faster. China is the most successful in this area. The specific performance is that Chinese state-owned enterprises have taken advantage of policy support to achieve economies of scale, reduce operating costs, increase the ability to sell and invest in new technologies, and thus increase overall competitiveness. Correspondingly, U.S. companies are not only disadvantaged in competition with Chinese state-owned enterprises in the Chinese market, but also face passive situations in the U.S. market and even third-country markets. He thus concluded that the Chinese model "distorts" the competition and poses a direct threat to U.S. employment and competitiveness in many ways.
Not only that, he also believes that the Chinese model poses a severe challenge to Western liberal capitalism. In several of his speeches, he stated that open markets and private capital are the key to stimulating economic growth. This has become a global consensus in the late 1990s, but this consensus is facing the challenge of state capitalism. Many countries do not follow the liberal model of the West. For example, China has huge financial resources and can effectively help state-owned enterprises to increase their competitiveness. They do not even need foreign investment.
According to Hormats, "The State Department has recently carried out many reflections on the so-called Chinese model's challenge to our competitiveness and global system." He recently stated in a speech at the American-Chinese Chamber of Commerce in Washington that the United States is making major adjustments to the existing international economic order within the OECD and other member states and the OECD secretariat, updating the existing international trade and investment. Economic standards, especially for Chinese state-owned enterprises, have established a "neutral framework for competition." The framework includes a set of policy recommendations, starting from the aspects of tax neutrality, debt neutrality, rules neutrality, ensuring the comparability of the profitability of state-owned and private enterprises, ensuring that the state-owned enterprises' price formation methods reflect actual costs, and ensuring that state-owned enterprises and the private sector Enterprises can compete fairly to solve the problems brought about by state capitalism on corporate governance, trade, investment, and competition. The United States hopes to establish new rules of the game to prevent China and other countries from using various incentives to tilt its competitiveness toward state-owned enterprises in order to achieve a multilateralization of US competition policy and apply to the resolution of domestic disputes in China, while updating the existing OECD State-owned corporate governance guidelines. It is reported that part of the drafting of the framework is currently nearing completion. Hormats believes that the United States and other members of the OECD attach great importance to this issue and have made political commitments. This will ensure that drafting will be completed soon.
Taking the competitiveness of China's state-owned enterprises as a target "competitively neutral," this is the concept mentioned by Robert Hormats, the Under Secretary of State for Economic, Energy, and Agricultural Affairs of the United States, at a press conference held at the New York Foreign Press Center. According to the interpretation of the reporter after the Homarz meeting, "competition neutrality" means that competition is not interfered by external factors, and its core is to update and adjust existing international economic rules so as to "make up for the existing international economic rules." There is no guarantee that the state-owned and private enterprises will have fair competition."