https://www.gatestoneinstitute.org/21538/china-private-sector
A larger problem, apart from tariffs, is that China does not have a private sector.
The Chinese Communist Party is the founding and only ruling party of the People’s Republic of China. Hence, all Chinese companies directly support the CCP’s priorities and ambitions to replace the United States as the world’s leading superpower. This plan obviously has little that might be good for the US, its national security, or its interests abroad.
China has openly been pursuing a policy of threatening to take over pro-Western neighbors such as Taiwan, the Philippines, South Korea, the Solomon Islands, India and Japan. In addition, Chinese warships have reportedly been invading Australian airspace and sailing alarmingly close to Australia. The CCP has also recently been trying to make it a “new normal” to have around Taiwan drills that at any time could turn into combat.
It has become increasingly clear that China’s plan to take over Taiwan and other neighbors is a question not of “if” but “when.” It is therefore crucial to understand that there is no private sector in China.
In the 14th Five Year Plan, the CCP identified the following industries as critical to China’s economic development: Artificial intelligence, semiconductors, robotic technology and biotechnology, to name a few.
Investing in China’s “private sector” underwrites China’s expansionist ambitions in Asia and enables it to continue claiming ownership of the South and East China Seas, as well as everything near it, to control world trade.
Investing in China’s “private sector” — effectively the same as its military — destroys the West’s interests, weakens its allies and fast-tracks the CCP in reaching its goals of seizing Taiwan and other neighbors, and possibly triggering a war with the United States. Investing in China’s “private sector” underwrites China’s expansionist ambitions in Asia and enables it to continue claiming ownership of the South and East China Seas, as well as everything near it, to control world trade.
US President Donald J. Trump’s current trade stand-off with the People’s Republic of China (PRC) has already induced some Chinese companies, such as Shein, BYD, TikTok and Temu’s parent company PDD Holdings to move away from China and have induced some Western companies – including Apple, Dell, Hasbro, Microsoft, Hewlett Packard, Stanley Black and Decker, Foxconn, Nintendo, BYD Auto, TSMC, Intel, Mazda, Google and Samsung also to move away or diversify.