Profit v. Principle: U.S. Companies Need to Move Out of China

News & Politics

Hit the road, Jack, and don’t you come back to China no more. The Chinese Communist Party (CCP) is a murderous, dictatorial, oppressive, and anti-American regime. It abuses its own people and works hard to undermine other nations. It’s time that U.S. companies pulled out of China for good.

U.S. companies with branches or manufacturing in China include Apple, Tesla, Starbucks, Johnson & Johnson, Disney, McDonald’s, Yum! Brands (think Taco Bell, Pizza Hut, KFC), Dell, Nike, Walmart, Trader Joe’s, Kellogg’s, Tyson, and Home Depot. These companies get cheaper labor and higher profits while helping an economy completely controlled by the evil CCP. How is this ethically justifiable? Shouldn’t these companies focus on creating American jobs and growing America’s economy, not making us economically dependent on our enemy?

If Hitler said you could have a company in Germany only if you let Nazi operatives work within your company to advance the Third Reich, would you say yes? That’s the equivalent of what U.S. companies have done by operating in China. The CCP is history’s greatest mass murderer, with 500 million victims and counting, and it continues to practice genocide, religious persecution, censorship, and other human rights abuses. It also requires all foreign companies operating in China to accept CCP operatives/plants in their companies.

The Company Law of the People’s Republic of China (PRC) was originally adopted in 1993, meaning that foreign companies operating in China have been hosting CCP cells for 30 years now. The Company Law, in its 2018 iteration, states:

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Article 19 The Chinese Communist Party may, according to the Constitution of the Chinese Communist Party, establish its branches in companies to carry out activities of the Chinese Communist Party. The company shall provide necessary conditions to facilitate the activities of the Party.

So U.S. companies operating in China are required to “facilitate the activities of” the CCP. Anyone else notice an ethical concern there?

Some U.S. tech executives seem to love the CCP. For instance, Apple CEO Tim Cook praised China’s innovation and longstanding ties to the U.S. tech company in March, ignoring the CCP’s obscene crimes. In 2021, the Johnson & Johnson China chairman praised China’s authoritarian COVID-19 response. That’s mind-blowing.

Not only are U.S. companies working hand-in-glove with the CCP by operating in China, but the American economy is heavily dependent on China even as the CCP becomes increasingly hostile. The U.S. House Select Committee on the CCP announced on April 1 that Chinese-owned firms make 80% of U.S. ports’ cargo cranes. The CCP also controls about 90% of the world’s rare earth processing. Rare earths are essential to all the electronic devices and chips upon which we depend.

It’s time U.S. companies stopped putting profit over principle, and started pulling out of China.

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