1. I wouldn't say China violates WTO, so much as it games it. China generally complies with explicit WTO rulings. But it also knows it can get away with a lot in the meantime.
https://twitter.com/BDHerzinger/status/1330181891245404166
2. Now there are some who say this makes WTO a net losing proposition for the US. I disagree. Nor do I think China actually benefits from cheating, to the extent it and everyone else imagines it does. But such cheating does detract from the potential benefits of the system.
3. The answer, in my view, is twofold: 1) strengthen WTO and apply it more assertively, with our allies; and 2) lead the way on other free trade - not managed trade - agreements that exclude China so long as it operates in bad faith.
4. I say "not managed trade" because the approach of the Trump Administration has been to counter Chinese mercantilism with more mercantilism, and I think that leaves us all worse off in the end.
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