Why Do We Tolerate Beijing’s Belligerence?

Too many of our companies have meekly accepted this general subjugation to the Communist Party’s new order.

“Western Spy Agencies Sound Alarms on Chinese Espionage” (Page One, Oct. 15) lays bare the reality of China’s economic model. The sheer volume of articles on this topic and related theft should make it clear that times have changed. What China once did quietly has now become loudly belligerent and anticompetitive. The Chinese Communist Party demands access to intellectual property just as it does for servers and security-camera feeds. Too many of our companies have meekly accepted this general subjugation to the Communist Party’s new order.

For years we have seen China combine its command economy, blended civil-military sector, and leverage over Western companies to inflict significant damage on the U.S. and global economies. Why do we tolerate this situation and still view China as a viable option? Beijing’s economic model is fundamentally at odds with the principles of competition and our liberal system.

Corporate leadership needs to act responsibly and prioritize shareholder value. From an investor perspective, we should price these risks into our investments and question whether submitting to Beijing’s demands align with fiduciary responsibilities. The insurance industry should also consider whether underwriting operations in China is a viable option.