Tuesday, June 12, 2018

The Republican Lilliputians and ZTE

The giant telecommunications company, ZTE, violated the conditions under which it purchased components from American manufacturers.  How should we best impress on them our displeasure?
Should we put them out of business?  Should we fine them $1 billion?  Should we place enforcement officers in their offices to monitor their activities?  Should we call for the replacement of ZTE's board members?

If we refuse to allow American companies to sell to ZTE, we put ZTE out of business.  That's what the Republicans want to do -- put them out of business.  Donald Trump wants to do everything mentioned above except putting them out of business.

What would be gained by putting them out of business?  What's been done has been done.  You can't undo it.  You can only hope to change future behavior.  Clearly, if ZTE were to do it again, ending our sales to ZTE would necessarily become our only possible course of action.

If this is such a complicated decision, why not just put ZTE out of business now?

Consider this:  ZTE is huge and being huge in China means you are a part of the Chinese government.  Companies like ZTE fall within the purview of China.  The measures suggested by Donald Trump do inflict pain on ZTE.  In addition, they set significant precedents for dealing with such situation should they reoccur.  Putting them out of business and inflicting dire pain on a Chinese entity seems excessive.

Why Democrats would act in this way is clear.  Let's do everything, they say among themselves, to screw up Trump's chances of doing anything positive.

But, why do the Republicans act in this pernicious manner?  Is it to exercise their power as members of the third branch of government?  If so, they're cutting off the nose of Uncle Sam to spite Donald Trump.

No comments:

Post a Comment