Tag Archives: Greg Autry

Don’t Let the Door Hit You on the Way Out American Corporate Friends, Bye Bye!

monopolyYou just can’t make this stuff up! A Shanghai court has convicted U.S. based Johnson & Johnson of violating Chinese “anti-monopoly” laws. Really, this from the One Party State? According to the Chinese state media monopoly “The market for medical instruments in China faced a lack of competition.” What a hoot in the land of State Owned Enterprises.

Although the multinational firm was fined a measly 530,000 yuan, the decision is indicative of an accelerating trend, where local government regulators and media actively work to damage the reputation of Western firms who have been doing business in China for a long time.

Other recent moves to harm American firms include the parade of stories deploring the sanitation of our fast food chains like McDonald’s and KFC. An astounding charge to those who know anything about the horrific nature of Chinese food production. Chinese media reports claimed ice served at KFC was often “dirtier than toilet bowl water.” Which, in my personal experience, would make it a lot more appealing than the Yangtze river. Of course, if they made their ice with water from the Shanghai municipal water monopoly it would be full of bacteria from the thousands of dead pigs floating in the water source.

Another fun story has been the barrage of attacks on Apple that came after Tim Cook made the announcement he would be moving some manufacturing back to the U.S. Gotta love the article entitled “Defeat Apple’s ‘Incomparable’ Arrogance” from the folks at the People’s Daily. This from a government that believes it is their right to determine what Chinese readers read and when possible, think. As soon as China can find a domestic smart phone OS (think buying out struggling BBRY), Samsung and Apple can kiss this market good bye. Of course, in the meantime Cook got on his knees to kiss the ring of the communist media.

The real goal here is to tilt the playing field in favor of Chinese domestic firms by undermining the powerful legitimacy foreign products have in the eyes of Chinese consumers. It is also a subtle way of  inviting American companies to leave China. Having brought the capital, technology and know-how to China, they are no longer necessary. Being unnecessary they are also unwelcome and have been shown the door.

This does not surprise those of us who understand China’s history. The go to strategy for Chinese Communist leaders since Mao has been to fawn on their enemies until they get what they need  from them and then arrange an arrest on trumped up charges or perhaps a convenient airplane crash. Watching the arrogance and gullibility of American CEOs play out on this stage would be darn humorous, if it were not for the  jobs, national wealth and global power that we’ve lost in the process of enriching this oligarchy of thugs.

Greg Autry serves as Senior Economist with the American Jobs Alliance, Economist with theCoalition for a Prosperous America and is co-author (with Peter Navarro) of Death by China: Confronting the Dragon – a Global Call to Action. He blogs regularly at: http://www.gregautry.us/blog  and on the Huffington Post.

Crowd Prepares to Bus off to “Welcome” Dictator Xi

I was honored to give a bon-voyage to this group of Vietnamese American Patriots headed to protest Xi Jinpings summit with Obama. Nobody appreciates their freedom as much as Orange County’s Vietnamese community!

I asked them to tell Xi “YOU ARE NOT WELCOME IN CALIFORNIA!” and to tell Obama, “THE AMERICAN PRESIDENT SHOULD NOT HUDDLE WITH A CRIMINAL DICTATOR!”

 

crowdA great group of Americans exercising their constitutional rights!

Protest Rally sm

 

photo 5

Proud to talk to the crowd!

 

photo 1 Meeting with the Mayor of Westminster and the Mayor Pro-Tem of Fountain Valley. Good people.

 

 

 

 

 

 

 

photo 3

SoCal Vietnamese-American Community on Xi Jinping Visit

PRESS RELEASE

 

For Immediate Release

June 5th, 2013

 

Vietnamese-American Community Rally

to Protest Xi Jinping

Date: Friday & Saturday June 07th and 08th, 2013

Place: The Annerberg Retreat at Sunnylands Estate, Rancho Mirage, CA

 

Considering that:

– Vietnamese people, Tibetans, Mongolians, Koreans, and Japanese…truly understand the meaning of “China Dream” because for thousands of years, China has dreamed to conquer and wipe out neighboring countries and races for Chinese expansion.

– Recently, to empower itself, China sent military spies and used cyber-espionage to steal US secret defense technology and business information causing tremendous damage to both U.S. national security and economy.

– China’s infiltration of toxic foods and unsafe products worldwide has caused epidemics and human casualties, by disregarding the safety of the U.S. consumers and the world.

– China claims ownership of 80 percent of the Southeast Asia Sea disregarding the right of adjacent countries such as Vietnam, Philippines, Malaysia, Indonesia, and Brunei…under the rules UNCLOS 1982 (United Nations Convention on the Law of the Sea).

– China claims ownership of the Senkaku Islands which lawfully belongs to Japan.

– China claims ownership of the Panatag Shoal’s Islands which is clearly within the territory of the Philippines.

– China’s allies, supports, and directs North Korea regime which has threatened the US, South Korea, Japan and other neighboring countries.

– China invaded and illegally took over the Paracel Islands in 1974 and part of Spratly Islands in 1988 which rightfully belonged to Vietnam for hundred of years, while killing 138 Vietnamese.

– China constantly harasses and kills Vietnamese fishermen while they work inside the 200 nautical miles of Vietnam Exclusive Economic Zone (EEZ).

The Vietnamese American Community in USA will stage a rally at Sunnylands, the Walter and Leonore Annenberg Estate, 37977 Bob Hope Drive, Rancho Mirage, California 92270 to protest against China’s presence when President Obama meets Xi Jinping on June 7- 8, 2013.

There will be a hunger strike against China for World Peace that will take place at the end of the rally on Friday June 07th, 2013. We call upon President Obama to act as a World Leader to continue leading the Democracy and Human Rights Movement that is now spreading out into the the world and reaching every oppressed country; Further, we ask Obama to demand and to guide China to respect the security and peace within the region as well as to work with the international body for a better future for mankind and to refrain from bullying other countries for China’s own interests.

In the nineties, our former President Ronald Reagan helped knock down the Communist Walls in East Germany and liberated Russia and the Eastern Bloc of Communist Countries, leaving him the legacy of a true World Leader. We sincerely hope that President Obama will follow a similar path and ingrain for himself such a legacy to liberate the rest of the world from the plague of Communism and Terrorism.

 

Patriot

 

For more information, please contact:

Neil Nguyen, Esq.

Tel: (714) 423-8888

Email: lsnxn2007@aol.com

 

Minh Van Tran

Tel: (714) 398-9641

Email: minhvantran99@yahoo.com

 

The Public Doesn’t Want to Know Who is Going to be Making their Sausage

China’s Shuanghui is going to buy U.S. Smithfield Foods. Shuanghui is a former communist state owned enterprise and Smithfield is the largest American pork production and distribution firm filling packages with dozens of brand names including: Armour, John Morrell, Cook’s, Healthy Ones . . . Before we let Congress and regulators roll over on this fat deal for U.S. bankers, let us remember that it hails from the land of outrageous food production scandals.

Before we start, let me be clear that I don’t know the details of Shuanghui’s food production, but I know way too much about what goes on with food in China and that just ain’t pretty. I could write a whole chapter (hey, we did) on Chinese product quality nightmares. For instance, I’ve watched sausage made in rural China and captured the cultural expectations of sanitation in these charming images:

Pig copy Sausage Close copy Sausage copy

Now, before you say that stuff just happens out in the sticks, let me point out that these nightmares are not limited to the medieval Chinese hinterland. Recently thousands of rotting pig carcasses were found to be polluting Shanghai’s drinking water. In a story entitled “Rivers of Blood” the Guardian newspaper writes of dead piglets bobbing on the shores of the river supplying China’s largest city with water. Nobody seems to know where 16,000 rotting pigs came from – or more likely the culprit is a big, well connected Chinese firm protected by the authorities. That’s just the way the Communist Party and their homies roll. The plutocracy gets richer, truth gets buried, the people get screwed.

China’s U.S. apologists will say, “those sort of problems will remain in China and we have the government to protect us in America.” Ridiculous, do you have any doubt that the Chinese owners of Smithfield backed by large American banks are going lower their costs by shutting down American farms – like they’ve done to our factories – and stocking your grocery shelves with pork produced in China, to Chinese standards? The regulatory argument allowing Chinese firms into the U.S. is the equivalent of allowing known bank robbers into our country because “we have police to protect us.”

The apologists will also say, despite all the evidence to the contrary, “China is working hard to clean up its act.” Well I’ll admit the commies get pretty nasty when they are publicly embarrassed. In 2008, the Chinese government executed the head of their own FDA and several others over a series of horrific scandals including the intentional tainting of milk and baby formula with melamine that sicken hundreds of thousands and killed several children. That’s how they roll in the nation that executes more of its people than the entire rest of the world combined. Get ready, the ethics of dead pigs and dead people are coming soon to your local Wal*Mart.

 

Greg Autry serves as Senior Economist with the American Jobs Alliance, Economist with theCoalition for a Prosperous America and is co-author (with Peter Navarro) of Death by China: Confronting the Dragon – a Global Call to Action. He blogs regularly at: http://www.gregautry.us/blog  and on the Huffington Post.

 

 

Memorial Day

This is a good day to think about how NOT to have a bloody war in the Pacific that will cost the lives of American Sailors, Soldiers and Marines.

The best way to do that is to support regime change in China. America (and the West in general) must stop funding the growth of the Chinese fascist military. We must stand up straight to China’s increasingly aggressive territorial claims against Taiwan, Japan, Vietnam, India, Tibet, The Philippines . . .

Twenty-five years of appeasing this dictatorship with our “engagement policy” has been an economic, military, and human-rights DISASTER Continuing this policy while executing an expensive “Asian Pivot” to counter the enemy we are building is INSANITY. Borrowing money from an enemy to fund our response to their aggression is SUICIDAL.

We must make it clear that  America will no longer support the communist government politically or economically. We will no longer trade our principles and our children’s future for cheap consumer goods. We must leave no doubt that if the people of China wish to continue or accelerate their economic progress it will have to be done under civilized leadership with respect for the rule of law and they bear the responsibility to remove their sociopathic government.

As always America will find peace through strength, truth and courage.

Korea Mem sm

Korean War Memorial, Washington DC

 

 

Greg Autry serves as Senior Economist with the American Jobs Alliance, Economist with theCoalition for a Prosperous America and is co-author (with Peter Navarro) of Death by China: Confronting the Dragon – a Global Call to Action. He blogs regularly at: http://www.gregautry.us/blog  and on the Huffington Post.

Shameful

richard stone ladt thatcher portrait.bmpThe beloved and often controversial Iron Lady of Britain, prime minister Margaret Thatcher was given a funeral ceremony in St. Paul’s Cathedral yesterday.  Notably absent were all members of the Obama administration including the President, Vice President Biden and the First Lady. The White House sought cover from this obvious snub by “sending” two Reagan era Secretaries of State. Firstly, Shultz and Baker would have gone anyway and secondly these men obviously do not represent the this President. Nobody from the current administration could be bothered to attend (and to be clear the invitations were turned down before the events in Boston).

The offensiveness of this appalling act is all the more apparent when one considers the breadth and depth of the British delegation to President Reagan’s funeral in 2004. Our good friends across the pond did not see the Gipper’s death as an opportunity to make a political statement against his conservative record. They treated the occasion with the appropriate dignity and in good British style did what needed to be done. In attendance were the sitting Labour Party Prime Minister (Labour being the equivalent of the Democrats in the UK), Prince Charles along with the ailing Lady. Tatcher. In fact, aware of her own failing capacity, she had taken the time to record this moving video in tribute the American President 18 months in advance of his actual death.

The British public are rightfully offended and outraged as are many Americans including myself. As an individual American with great respect for the UK and for the ideals Mrs. Tatcher represented I’d like to offer my sympathy to the people of Britain and offer my apologies for this obscene oversight by our leadership. We should all take the time to do so publicly.

Greg Autry serves as Senior Economist with the American Jobs Alliance, Economist with theCoalition for a Prosperous America and is co-author (with Peter Navarro) of Death by China: Confronting the Dragon – a Global Call to Action. He blogs regularly at: http://www.gregautry.us/blog  and on the Huffington Post.

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42, America and the Moral Equivalence Lesson

“42” is the feel good movie of the year. Heck, it was even worth watching with rabid Dodgers fans.*

Seriously , Jackie Robinson’s inspiring story reminds me of something I’m constantly trying to explain to my cynical critics who are always quick to produce a list of American historical sins as though some awful thing that happened 150 or 70 years ago in the US should excuse any manner of Chinese misbehavior today via the magic of  moral equivalence.

42

What they miss is that in America we celebrate our errors, not bury them like a Chinese bullet train accident and in doing so we move forward and get stronger. Every player in baseball wears Jackie Robinson’s number on Jackie Robinson Day each April to celebrate his victory over our own evil behavior. There is a giant monument to Crazy Horse being built by the family of an Italian immigrant to celebrate the great native American who stood up to the U.S. Army and killed a famous general. There is a memorial to the four student protesters slain at Kent state.  These days Americans are having an anxious public debate over the role of the state in marriage and whether rights are limited by sexual preference. We will survive this, eventually do the right thing and come out a better and stronger nation. It may seem embarrassing, but it is something to be proud of, because America is not a static concept or even an ideology; America is a process.

America is not great because it is perfect; rather America is great because it aspires to perfection.

The day we see a statue to the fallen at Tiananmen Square on 六 四 is the day we will know there is hope for China and the world. That would take more courage than China’s leadership can muster. Xi Jinping is not half the man Branch Rickey was.

 

Greg Autry serves as Senior Economist with the American Jobs Alliance, Economist with theCoalition for a Prosperous America and is co-author (with Peter Navarro) of Death by China: Confronting the Dragon – a Global Call to Action. He blogs regularly at: http://www.gregautry.us/blog  and on the Huffington Post.

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*I’m a die hard Anaheim Angels fan as a distant relative of mine founded the team, but for today I’ll wear blue.

Peace in Our Time

KerryChinaSo, our brilliant and tough (heavy sarcasm intended) Secretary of State, John Kerry has recruited China as a “partner” in calming down the artificial crisis on the Korean Peninsula.  What an amazing accomplishment of diplomacy and how wonderfully convenient for the Chinese leadership that we cannot “risk” confronting them over the massive Cyber Warfare directed at the US., since we suddenly need them to calm down their Korean pit bull.

OMG! Why don’t we just send over a couple of really nice junior high school girls to deal with China? They’d love the panda bears, it would be cheaper and the outcome would be exactly the same.

Greg Autry serves as Senior Economist with the American Jobs Alliance, Economist with theCoalition for a Prosperous America and is co-author (with Peter Navarro) of Death by China: Confronting the Dragon – a Global Call to Action. He blogs regularly at: http://www.gregautry.us/blog  and on the Huffington Post.

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Progress

I was very pleased to see that included in the continuing resolution bill passed by Congress were two items I’ve been advocating for sometime including in my recent testimony. Hats off to Congressman Wolf and others who have helped America take this step in the right direction!

http://www.gpo.gov/fdsys/pkg/BILLS-113hr933enr/pdf/BILLS-113hr933enr.pdf

SEC . 109. The Department of Commerce shall provide a monthly
report to the Committees on Appropriations of the House of Representatives
and the Senate on any official travel to China by
any employee of the U.S. Department of Commerce, including the
purpose of such travel.

SEC . 516. (a) None of the funds appropriated or otherwise
made available under this Act may be used by the Departments
of Commerce and Justice, the National Aeronautics and Space
Administration, or the National Science Foundation to acquire an
information technology system unless the head of the entity
involved, in consultation with the Federal Bureau of Investigation
or other appropriate Federal entity, has made an assessment of
any associated risk of cyber-espionage or sabotage associated with
the acquisition of such system, including any risk associated with
such system being produced, manufactured or assembled by one
or more entities that are owned, directed or subsidized by the
People’s Republic of China.

(b) None of the funds appropriated or otherwise made available
under this Act may be used to acquire an information technology
system described in an assessment required by subsection (a) and
produced, manufactured or assembled by one or more entities that
are owned, directed or subsidized by the People’s Republic of China
unless the head of the assessing entity described in subsection
(a) determines, and reports that determination to the Committees
on Appropriations of the House of Representatives and the Senate,
that the acquisition of such system is in the national interest
of the United States.

Greg Autry serves as Senior Economist with the American Jobs Alliance, Economist with the Coalition for a Prosperous America and is co-author (with Peter Navarro) of Death by China: Confronting the Dragon – a Global Call to Action. He blogs regularly at: http://www.gregautry.us/blog  and on the Huffington Post.

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Testimony To Foreign Affairs – 3/21/13

The following testimony was presented to the Foreign Affairs Subcommittee on Europe, Eurasia, and Emerging Threats on March 21, 2013. PDF is at: https://docs.house.gov/meetings/FA/FA14/20130321/100547/HHRG-113-FA14-Wstate-AutryG-20130321.pdf

testiomony

 

 Testimony of Greg Autry

Senior Economist, Coalition for a Prosperous America, American Jobs Alliance

On

Cyber Attacks: An Unprecedented Threat to U.S. National Security

Before the

Subcommittee on Europe, Eurasia, and Emerging Threats

Committee on Foreign Affairs

U.S. House of Representatives

March 21, 2013

 

Good afternoon Mr. Chairman and members of the Subcommittee. My name is Greg Autry. I am the co-author, with Peter Navarro, of the book Death by China. I also serve as Senior Economist for the Coalition for a Prosperous America and the American Jobs Alliance. I teach macroeconomics at Argyros School of Business at Chapman University in Orange, California. I have previously worked as a software and network engineer and have earned certifications from Novell (CNE), Cisco (CCNA) and Microsoft (MCSE).

I am testifying on my own behalf and the views expressed here are not necessarily the views of any organization.

My testimony will focus on the economic consequences of China’s persistent cyber assault against America’s citizens, firms, government and critical infrastructure.

The recent report from Mandiant Corporation has made perfectly clear what everyone in the cyber security community already knows – there is a giant sucking sound in the world economy and it is coming from China. The government of that nation has long been engaged in a massive hacking campaign aimed at Western firms, governments and infrastructure. The military origin of these attacks, the obvious economic cost, and the threat implied by intrusions into our critical infrastructure, mark this as a 21st century act of war.

These attacks are not an isolated case of industrial espionage but rather part of an integrated military-economic-cultural assault on America, a nation that China views not as a benefactor and valued trading partner, but rather as an ideological adversary who must be subdued by any means necessary. Chinese senior military strategists have discussed such multidimensional warfare for years[1]. While the Chinese economic assault on the U.S. manufacturing base is painfully visible to our unemployed, the Mandiant report shows that China views this as a military operation. In the process China has debased the Internet, a gift to the world developed at U.S. taxpayer expense.

As a former software and network engineer, I am undeniably impressed by the skill, thoroughness and audacity of several private sector organizations whose counterintelligence work has brought the Chinese hacking threat into the light. Canada’s Information Warfare Monitor report on the Gh0st RAT threat, McAfee’s work on Aurora, Dell Secure works investigations into Chinese military connections and now Mandiant’s brilliant demonstration that Unit 61398 of the People’s Liberation Army is APT1 have done our nation and the world a great service.

However, it is reasonable to assume that our national security, military, and government officials have aware of this for sometime. Why is the Chinese regime never held accountable for of any manner of bad behavior? If 61398 were an Iranian Republican Guard unit located in Tehran the U.S. military would have reduced their HQ to a smoldering pile of rubble long before I presented this testimony.

How does an economist estimate the cost of Chinese cyber warfare? The evidence suggests these revelations are merely the tip of the iceberg. The FBI admits, “As a result of the inability to define and calculate losses, the best that the government and private sector can offer are estimates.”[2]  A full accounting of the damage done to the U.S. is impossible to compile, because most of the victims will never detect the Chinese intrusions or will decline to admit to their losses.

The discrepancy between expert estimates and the value of crimes actually reported makes this under reporting obvious. For instance, Symantec estimated 2011 individual and small business cybercrime losses at $388Billion[3], while the FBI’s IC3 summary of actual reports that totaled a mere $485million[4]. McAfee even tossed out a $1Trillion estimate a few years ago. Using the more conservative number only a little more than a tenth of one percent (0.0125%) of these crimes by cost were reported. Even if Symantec overstated the problem by an order of magnitude we still have more than 98% of cybercrimes going unreported.

In any case, how do we place a value on something like Google’s source code? The firm trades at 25 times its annual earnings, suggesting most of its value is in future revenues. Conservatively assuming that half of Google’s market capitalization of $248 billion reflects the value of its technology (other factors might be labor force, brand equity and assets) this implies a property worth $124 billion has been compromised. While assessing the total cost over time has too many unknowns to model, Google has clearly suffered at the hands of its Chinese competitor Baidu. Google has lost $ billions in the Chinese market alone prompting Google’s co-founder Eric Schmidt to brand the Chinese government a “menace.” He has wisely noted that “The disparity between American and Chinese firms and their tactics will put both the government and the companies of the United States at a distinct disadvantage.” In other words we don’t cheat and steal well.

Assuming that most American firms are less savvy than Google when it comes to cyber security, it is easy to justify some very large losses. If Mandiant was able to identify 141 victims, there are thousands of compromised firms. If we set Google’s losses at just $10 billion and assume that to be fifty times larger than the average of two thousand major victims we end up with a $400 billion figure. In any case, the losses are clearly in the hundreds of billions of dollars.  Putting an exact number on the damages should be no more important to our reaction than calculating the precise losses from Al Qaeda attacks. The point is that the Chinese government is currently using its military to intentionally inflict enormous damage on the American economy.

Consider that the economic costs of the September 11 attacks (excluding the military reaction) have been estimated at around $175Billion[5]. The annual cost of Chinese military hacking to the US economy is therefore in the same range as 9/11. Every $100 billion implies a loss of about one million American jobs[6]. Chinese military hacking has left millions of American workers unemployed. And although we’ve been spared the specter of horrible televised deaths, the suicide and death rates for the unemployed are substantially higher than the national average[7]. The statistics would suggest that over the years, Chinese military hacking has killed thousands of Americans.

The membrane between the black-hat hacker community and the professional security services of China is very permeable.  Internet trolls with handles like “UglyGorilla” have access to millions of American emails and passwords via their PLA connection. American workers often use their business computers and email for personal financial transactions. Many of them use the same password at work as they do on their bank. The American public should be in an uproar.

Technical protections against cyber intrusion have consistently proven to be insufficient because most initial system compromises are achieved via exploitation of human beings with “social engineering” tricks like spear phishing. The criminal consequences of getting caught are minimal. A report from Cambridge recently suggested, “we should spend less on anticipation of cybercrime (antivirus, firewall, etc.) and more in response . . . hunting down cyber-criminals and throwing them in jail.”[8] Internet crimes must have punishments, even when the criminal is the Chinese government, or there is no rule of law online. As an analogy consider that if the police don’t respond and the courts don’t enforce the law, all the alarm systems and locks on Earth could not keep your home safe.

When businesses in lawless regions are left at the mercy of criminal elements they must: fail, relocate or reach an accommodation with the criminals. Consequently, victims of Chinese cyber attacks are actually helping to conceal the extent of this problem. They wish to avoid public humiliation, negative stock market reaction and the liability associated with the loss of customer data. What makes the silence more worrisome is that most large American corporations have been, for all practical purposes, coopted by the Chinese government. They are so dependent on low-cost production in China and strategically committed to the promise of the “world’s largest market” that exposing the criminal behavior of their notoriously vindictive host is unthinkable. With the noble exceptions of Google and the New York Times, an American Corporation is no more likely to “call the cops” on China than are the victims of abusive relationships likely to testify against their spouses.

Remedies proposed by the administration suggest that nothing will happen until a victim proves exactly what China took it and how they used it. What CEO wants to take another beating from China’s state manipulated economy and the stock market while trying to convince the U.S. government and the WTO of their victimhood?

Worse, many officials in the departments of State, Treasury and Commerce upon whom we depend to make China play fair come straight from doing business with China or proceed to do so as soon as they leave government.

What is most important is recognizing the systemic nature of the China problem. None of China’s offenses, including cyber attacks, occur in isolation. They are part of an integrated, asymmetric war by other means policy. Yet, America deals with trade cheating, space debris, and espionage as though each were a completely disconnected phenomena.

We are executing an “Asian Pivot” strategy to confront China’s increasingly belligerent military posture in the Western Pacific, while our consumption of Chinese goods finances a massive PLA arms build up. The administration promises to tackle PLA cyber assaults in a similarly schizophrenic manner. Nothing could possibly make China’s master strategists happier.

The fundamental problem is that the Chinese government is not a normal government but an immoral regime conducting an active and planned assault against our political and economic institutions. These cyber attack revelations are simply the latest manifestation of that war in progress.

Do we believe that China’s corrupt, state dominated economy is actually beating American private enterprise in a fair contest? While Shanghai booms and Chinese billionaires sprout up like rice in the spring, 25% of Americans are unemployed or underemployed. This is the root of our intractable fiscal dilemma. While we cut and tax, the Chinese government can hardly think of enough new things to do with the vast wealth our consumers and corporations transfer to them – from maglev trains and moon missions to a frightening military buildup. This is what losing a 21st century war looks like.

 

 

I propose the following remedies.

Get Real about China: It is time to publicly admit that our engagement policy has completely failed to produce a democratic, peaceful China and is empowering an aggressive dictatorship. We must engage our allies in this new approach.

Systemic Penalties for a Systemic Problem: Take the burden off demonstrating damages off the victims and put the pressure on the perpetrator to stop. The PLA has been proven guilty of intending to undermine American firms and it does not enjoy constitutional rights in the US. A significant tariff should be placed on Chinese manufactured technological goods until there is no further evidence of these activities.

Technology Sanctions: The import of any Chinese computer and telecom networking hardware or software into the U.S. should be restricted. Specifically: Huawei, a technology firm founded by a Chinese military officer and routinely implicated in intelligence work.

Recover Costs of Defense from China: An import tariff equal to America’s cyber defense costs should be attached to Chinese imports. (A similar tariff should be assessed for our expense of missile defense and the “Asian Pivot” costs.)

Return Costs to Multinational Corps: It is time to stop rewarding American corporations for transferring capital, technology and jobs to an enemy state by modifying our corporate tax system to favor American based manufacturing.

Stop Conflicts of Interest: Halt the flow of US officials to and from engagement in business with China. Encourage the Senate to make the investigation of Chinese business dealings a priority in confirmation hearings for officials at State, Treasury, and Commerce.

Stop Educating Our Adversaries in Military Technology: Ban the admission of computer science student to the U.S. from nations whose militaries engage in cyber attacks against America and her allies. We are educating a massive pool of Chinese talent in our computer science and engineering schools, where they displace tens of thousand of American citizens and allies.

Encourage U.S. Education in Computer Science: Direct the majority of student aid to STEM majors and specifically graduate degrees in computer science and engineering.

Protect and Reclaim The Internet: The Internet is an invention of the American government funded by U.S. taxpayers. The U.S. government and the U.S. armed forces are reasonably entitled to demand special privileges in its use. Any attempt to transfer further administrative oversight of the Internet to international regulatory bodies must be most strongly opposed. Any opportunity to regain U.S. control of the Internet would be in the interest of all people, most notably the citizens of China. Specifically ICANN and control of the DNS root must remain in the U.S. Root servers currently in the U.S. must remain there. The location of anycast servers should be restricted to friendly nations.

 

Closing Note: I want to be clear that my remarks are in no way meant to disparage the admirable nation of China nor its hardworking people. My criticisms are aimed entirely at the corrupt, nominally communist plutocracy that is repressing them and at the failed American policy of engagement, which has enriched and empowered that loathsome regime a thousand fold.

————

Greg Autry serves as Senior Economist with the American Jobs Alliance, Economist with theCoalition for a Prosperous America and is co-author (with Peter Navarro) of Death by China: Confronting the Dragon – a Global Call to Action. He blogs regularly at: http://www.gregautry.us/blog  and on the Huffington Post.

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[1] i.g. Liang and Xiangsui, Unrestricted Warfare, 1999.

[2] http://www.fbi.gov/news/testimony/cybersecurity-responding-to-the-threat-of-cyber-crime-and-terrorism

[3] http://us.norton.com/content/en/us/home_homeoffice/html/cybercrimereport/

[4] http://www.ic3.gov/media/annualreport/2011_IC3Report.pdf

[5] The New York times suggest $55billion in physical damage and $123billion in attenuated economic impact. The cost of invading Afgahnistan and Iraq in reaction are separate and larger; though they are surely much less than the cost of using a traditional military response to China – something that is probably not a wise option.  http://www.nytimes.com/interactive/2011/09/08/us/sept-11-reckoning/cost-graphic.html?_r=0

[6] Estimating revenue of $100,000 per job

[7] http://www.nytimes.com/2012/11/05/health/us-suicide-rate-rose-during-recession-study-finds.html, http://news.yale.edu/2002/05/23/rising-unemployment-causes-higher-death-rates-new-study-yale-researcher-shows

[8] Measuring the Cost of Cybercrime: http://weis2012.econinfosec.org/papers/Anderson_WEIS2012.pdf