Getting tough with China?

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The US government, Microsoft's best advocate.

Of course, Microsoft and the business organizations to which it belongs will have little impact on Chinese government policies. Piracy and software protectionism are not essentially a problem; they're an increase in profits.

But, because the Chinese policies are blatant protectionism, the policies also make the best target for anyone dissatisfied about the impact of China's commercial success.

The Bush administration has not shown itself eager to attack China's commercial strategy. But they also cannot totally ignore the emotions caused by the success of China in producing goods for the US market. So, I think we can expect them to pick some kind of cause to attack.

Currency is obvious, but that is very significant to the Chinese, so negotiations will take a long time and result in a compromise.

The Bush administration can make a range of points that appeal to a lot of people, including members of unions, by going after China on Chinese protectionism.
And there's the victimization of Microsoft, a glaring case, waiting for them at any time. The administrations friends are also friends of Microsoft in a number of cases.

So, I expect that some day in the reasonably close future, you can expect a public scolding of China for its policies affecting Microsoft. And some behind the scenes actuions that get reasonable results.

Microsoft, poster child for Sino-American fairness.


Quoting from the article:

Another issue is market access. Particularly worrisome to some are draft regulations in China on software procurement by government entities. The proposed rules "essentially block international companies
from competing for (Chinese) government procurement contracts," the head of the U.S.-China Business Council, a group that includes Microsoft, IBM and Hewlett-Packard, said in Congressional testimony this month.

China's efforts to develop its own technology standards also have been a cause for concern to U.S. companies. In a challenge to Microsoft in particular, China has worked with South Korea and Japan to develop an open-source alternative to Windows software.
Harris Miller, president of the Information Technology Association of America trade group, also thinks U.S. officials should be making more noise on China. Miller cites piracy and the proposed procurement rules as particular concerns, and argues that behind-the-scenes efforts by U.S. officials to bring about change in China have not proven effective.
He applauded action taken by the administration on textiles and Snow's recent scolding of China on currency policy. "The U.S. needs to step up the pressure," he said.

Posted by: Anton Philidor   Posted on: 05/20/05 You are currently: a Guest | Members login | Terms of Use

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