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China: Kevin Rudd's framework in the context of on-the-ground business reality

"For decades Western companies have invested capital and endured red tape," but now China is using bullying tactics to make life hard for Western multinationals (Fortune Oct 27, 2014). Of course, the intellectual property issue has always been there. For example, Microsoft sells only about one out of 10 of its products being used in China because of piracy. The new assaults are in terms of multi-million dollar fines and being forced to confess guilt without due process. "Foreign business is being targeted, and so the multinationals are the most negative on China that I've seen in 25 years," says Jim McGregor, who has worked for WSJ and Dow Jones in China.

Talking at TED about the possibility of a US-China conflict, Australia's former prime minister Kevin Rudd offers a framework of constructive realism for a common purpose. He explains, "Be realistic about the things that we disagree on, and a management approach that doesn't enable any one of those differences to break into war or conflict until we've acquired the diplomatic skills to solve them. Be constructive in areas of the bilateral, regional and global engagement between the two, which will make a difference for all of humankind. Build a regional institution capable of cooperation in Asia, an Asia-Pacific community. And worldwide, act further, like you've begun to do at the end of last year by striking out against climate change with hands joined together rather than fists apart."

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