“Chinese companies see US and EU companies as very risky, largely because so many US and EU companies want to move their production out of China.” –Dan Harris, co-founder of HarrisBricken and co-editor of The China Law Blog.
A large potential avalanche of risks are those that would shake up the business world if – as some expect – trade relations between China and the US and the EU were to end.
China is the United States’ largest trading partner, a relationship responsible for $ 600 billion a year in trade, according to the Office of the US Trade Representative. By comparison, US-EU trade exceeds $ 1T. The trade deficit with China for goods is more than $ 300 billion, while the United States has a trade surplus for services of $ 25 billion. China is the United States ‘largest supplier of imported goods, while China is the United States’ third largest export market. The United States is investing about $ 125 billion. USD in China, compared to China’s investment of 38 billion. USD in the United States. The figures vary widely depending on who you ask, but the trade representative estimates US GDP at 21 billion. USD and China to more than 14 billion.
If you missed it, relations between the United States and China have been strained. President Trump focused on the disadvantages of relations with the United States, and China’s response to the sanctions imposed by President Biden and the West on Russia for invading Ukraine has made relations even more rocket. The marriage between the United States and China needs serious advice. Eventually, experts say, the couple is heading for divorce. How that breach unfolds, especially if or when China takes over custody of Taiwan – peacefully or otherwise – is something business needs to prepare for. None; seriously. If the West, for example. should impose sanctions on China similar to those on Russia, the shift in the business world would be tectonic.
Joining me in this episode is Dan Harris, a leading authority in the legal and strategic aspects of conducting business in emerging markets. Dan is a co-founder of the international practice in Seattle-based HarrisBricken, which has offices throughout the United States as well as in China, Spain, Mexico and Brazil. His China Law Blog was named, and with good reason, for ABA Journal’s “Blawg Hall of Fame.”
This podcast is the audio guide for Journal of Emerging Issues in Litigation. That Journal is a collaborative project between HB Litigation Conferences and Fastcase legal research family, which i.a. Full Court Press, Law Street Media, and Docket Alarm. The podcast itself is a joint effort between HB and our friends at Law Street Media. If you have comments or want to participate in one of our projects, or want to tell me how much you have learned from Dan, send me a message at [email protected]
Host and litigation enthusiast
PS It is possible that I should refrain from imposing metaphors on my guests. The relationship between the United States and China is nothing like a marriage. However, we always forget our anniversary. We are more like neighbors who have to deal with each other. Our “good morning” and “have a nice day” are fake at best. There are persistent hurt feelings (“You always park in front of my house”, “You never invite us to parties”) and suspicion (“I’m pretty sure it’s you who do not pick up after their dog”), but courtesy is a must when sharing friends and a fence. Oh, man, and now our kids are playing together.