The October Surprise

Main content

On October 4, 2018, coincidentally or not, there were two stories describing China’s provocative policies toward the United States and the world. These were not sensational stories. One was from the Vice President of the United States given at the Hudson Institute and the other was the front cover and feature story of Bloomberg’s Businessweek Both of these read more like a highly confidential U.S. intelligence brief than something for public consumption. I highly recommend taking time to read both of them carefully. The news that keeps coming under the title “trade war” in the popular press and media has nothing to do with trade at all. I offer no opinion on this except to say that China is a very important part of the global supply chain and any disruption in this would have adverse consequences to global markets.

The Big Hack: How China Used a Tiny Chip to Infiltrate U.S. Companies” - Bloomberg Businessweek 10/4/2018

The attack by Chinese spies reached almost 30 U.S. companies, including Amazon and Apple, by compromising America’s technology supply chain, according to extensive interviews with government and corporate sources.

"Remarks by Vice President Pence on the Administration’s Policy Toward China" - The Hudson Institute 10/4/2018

Beijing now requires many American businesses to hand over their trade secrets as the cost of doing business in China. It also coordinates and sponsors the acquisition of American firms to gain ownership of their creations. Worst of all, Chinese security agencies have masterminded the wholesale theft of American technology –- including cutting-edge military blueprints. And using that stolen technology, the Chinese Communist Party is turning plowshares into swords on a massive scale.

Please see the Global Perspectives Quarterly Market Outlook and don't forget to register for the GP Quarterly Market Outlook Webinar!

Footer content