Media Analysis: Government Interventions/Business- Government Trade Relations

Media Analysis: Government Interventions/Business- Government Trade Relations
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Media Analysis: Government Interventions/Business- Government Trade Relations
The world would be a better place if governments world over could demonstrate some degree of commitment to trading patterns that are devoid of trade barriers. Open and free trade among nations has a numerous benefit that potentially outnumber the associated risk. Worth of note is the fact that despite these benefits, governmental intervention in the trade of goods and services with other nations is the order of the day (Wild et al., 2003). The most recent classic case is the United States trade confrontation with China. The U.S government through Executive Order and the Department of Commerce released a rule restricting government agencies from doing business with Huawei, the giant Chinese telecommunications equipment and smartphones maker on the ground of national security threat (Lohr, 2019). This example perfectly relates to the concepts discussed by Wild et al (2003) in “Business-Government Trade Relations” on the political, economic and cultural motives behind governmental intervention in trade in various ways (156-173). It also exemplifies the methods that government use to restrict and/or promote international trade.
Empirical Trend or Perspective of “Reserve National Security”
Nations always have reasons to justify their intervention in trade of goods and services and so is the United States. The reason cited by the U.S government for blacklisting the Huawei is because the latter posed potential national security risk to the United States. The claim is corroborated by statement by U.S intelligence officials. The Director of FBI, Christopher Wray stated in his testimony before Senate Intelligence Committee hearing in February 2018 that “it provides the capacity to maliciously modify or steal information, and it provides the capacity to conduct undetected espionage” (Stewart, 2019, n.p).The United States Commerce Department effected the Congressional mandate by putting Huawei and its 70 affiliates on its trade blacklist known as “Entity List.” Once on the trade blacklist, Huawei is practically barred from buying any parts and components from U.S companies without the government’s approval.
Trade-Related Decisions Based on Political Motives
It is noteworthy that any governmental intervention in trade is motivated either by political, economic or cultural reasons. It would be no surprise that the U.S decision to black list Huawei was politically motivated. “Government officials often make trade-related decisions based on political motive… even though trade policy based purely on political motives is seldom wise in the long run” (Wild et al., 2003, pg. 156). The main political motives behind governmental intervention in trade includes among other things, preservation of national security. It therefore appears that the United States hides behind the reason of national se...