Not a week goes by that my office doesn't hear about how American companies face an uphill battle against the Chinese. These questions go beyond China's currency manipulation; they include concerns that China simply does not always play by the rules.
On Tuesday, the House Ways and Means Committee held a hearing about how Congress can help level the playing field between American and Chinese companies. There's no doubt that China presents a great opportunity for Minnesota companies to find new customers. The committee discussed how we can help American companies compete to win despite China's lack of regulatory transparency, distortive subsidies, indigenous innovation policies and many other barriers to U.S. Exports and investment.
A perfect example of the disadvantages facing American companies is Chinese government's proposed policy that would strictly control the pricing of imported medical devices. This would allow China to set the price of U.S. devices far higher than locally made Chinese devices putting American products at a distinct disadvantage.
Piracy and intellectual property also must be addressed. It is estimated that nearly 80% of business software in use in China has been obtained illegally costing 60,000-85,000 jobs and $3.5 billion that could have been contributed to U.S. GDP.