[Luis Gonzalez]

"Beijing will use American transnational corporations to aid in its development efforts."

There's the theory at work.

[WRhine]

"Beijing will use American transnational corporations to aid in its development efforts."

There's the theory at work.

Indeed, though you seem to have misinterpreted William Hawkins. He is referring to American corporations aiding (via technology transfers) China's development efforts in building new industries like autos, aerospace, chemicals etc. where China has no advantage, comparative or otherwise. IOWs, China is using OUR technology in their nationalistic drive to build their own manufacturing & technology industries.

This is wholly outside the set of assumptions used in comparative advantage theory, where each nation meekly specializes in narrow industries and takes a passive role of collaboration in world trade for the theoretical benefit of all--Kinda like A Big Group Hug.

What Hawkins is saying is that is not how this world works. And he is correct.