announced this week that it was opening a new data storage center in Guizhou, a province in southwest China. The move was in response to strict new rules (both sweeping and vague) in China’s newly enacted cybersecurity law. Under the law, companies must store Chinese citizens’ data in China and agree to other onerous and potentially anti-competitive restrictions (see below). The point made here is that Apple’s knuckling under is just another step in a slow but steady drive by Beijing to implement its Made in China 2025 program that aims to replace foreign technology companies and capabilities — often American — with Chinese alternatives. A top priority for the Trump administration — no matter how relations with China work out on North Korea — should be to address with dispatch China’s relentless, market-closing strategy, particularly in the information and communications technology sectors that underpin internet-related goods and services.
AEI blog, it was clear during my recent visit to Beijing that Chinese leaders strongly believe the April Trump-Xi Jinping summit represented a “turning point” in US-China relations and led the way toward solving a number of pressing bilateral issues during the “100 days” negotiating period the two leaders had laid out for concrete results. My AEI colleagues and I, while not wanting to rain on the parade, did express skepticism over the euphoria and potential for achieving major breakthroughs in that brief time span. And it should be pointed out that in recent days, US Treasury Secretary Steven Mnuchin spoke of both a 100-day plan and a longer term, one-year set of negotiations.