Here's why it will fail to stem the tide of IP theft by China:
1. The Chinese government uses a wide variety of legal means to acquire foreign technology. Sanctions will have no effect on that.
2. China's Internet space is used by a wide variety of foreign hackers to launch attacks from against U.S. companies. China is the perfect patsy for every false flag operation in the world. Sanctions will have no effect on that.
3. At least one Chinese hacker group (written about in the FBI's indictment against Chinese businessman Su Bin) never launches its attacks from within China or receives electronic files within China. It only runs its operations from countries outside of China. Isn't that the minimum tradecraft that we would expect from the Ministry of State Security, the PLA, and every other foreign intelligence service that ever existed - EVER - in the history of the f__king world?
Now that you know why sanctions will fail to accomplish its stated goal of stemming China's acts of economic espionage, what will the cost of sanctions be to U.S. businesses?
The questions that the report authors posed for U.S. companies 17 years ago are still relevant today and include:
- the business losses experienced, compared to the returns expected if sanctions had not been in place;
- the effects of delayed entrance into a market because of sanctions;
- the business losses incurred because sanctions may cause U.S. firms to be perceived as unreliable suppliers, due to the threat of future U.S. unilateral economic sanctions.
Most of the Fortune 1000 are either doing business in China or want to do business in China. The larger they are, the more this applies. Each one of those companies should contact the White House and find out what the President is planning, then determine how it will effect them because one thing is for sure - they won't see any upside. It's only going to bring them pain.