The challenges facing US industrial dynamism extend are in part a product of the Chinese Communist Party’s market distortions: Rebuilding domestic industry will demand equal protection as well as promotion. This excerpt from Benedict Rogers’s The China Nexus details a new US resolve to protect.
The best prospect for getting Global Gateway going strong would be to understand that it must be turned into a tool that finances the external dimension of a European industrial policy cognizant of the need to diversify, to cut dependencies vis-à-vis authoritarian countries, and to find new ways of partnering with the Global South towards sustainable development.
Reshoring, especially from China, is essential to American resilience. Here, Harry Moser proposes a framework and set of policy measures to level the industrial playing field. These could bring the total reshored US jobs to 5 million, a 40 percent increase in manufacturing, and full American resilience.
An effective response to inflation – and to the more systemic supply demand mismatch that threatens the US economy – requires investment in supply. This is a project for the private sector. But the private sector needs a push from Washington.
China is not a free market. Free exchange with China is not free trade. This is a straightforward reality. It is also one that goes under-stated in American discourse – and that demands spelling out: The short-sighted insistence that free exchange with China is free trade threatens the basic assumptions, and architecture, of international free trade itself.
A July 2022 poll sponsored by Force Distance Times found that the plurality of likely voters favor ending China's Permanent Normal Trade Relations status (Most Favored Nation status), and 2-1 support among Republicans – all at the height of inflation. American public will backs this strategic opportunity in US-China competition.
It is time for the US tech sector to recognize the near and present national security threat China poses; to get on the right side of history. For the US to prevail against a centralized, Communist system, its tech sector will have to lead, proactively. Markets will reward this. The country needs it.
Positioning for the industrial competition at hand will require the US national security community to recognize that today's geopolitical contest may not be fought with missiles. Except, that is, as it applies to where those missiles are made. This is a war to be won on the factory floor. And it started long before Pelosi’s Taiwan visit.
How to craft an economic policy capable of saving Italy, and with it Europe? We have a few alternatives, summarized by the so-called "austerity trilemma" that affects the euro-area: You cannot have austerity (the loss of the possibility of using fiscal policy with increased public demand to counter adverse shocks and help the weakest), democracy, and a common euro currency simultaneously. We have to choose two of the three.
The world is witnessing the first great power military challenge to the US-led liberal international order—an order that Russia and China have long sought to discredit and dismantle. This moment be seized upon to reorient Western thinking from its climate-centric mindset to one that’s security-centric and climate-inclusive
US industry is seeing the accumulated debts of decades of offshoring – and decades of offshoring to geopolitical adversaries – reach maturity. It’s time to adopt a new model. Instead of optimizing for the lowest costs, the US needs to start optimizing for resilience
For decades, bad habits have become entrenched. The country has allowed itself to auction off long-term economic prosperity in exchange for short-term profits. Now, the US must break its habits, not take false shelter in them.
China’s ability to manage its economy and undermine the American capitalist model is still strong. This excerpt from Richard D'Aveni's prescient "Strategic Capitalism: The New Economic Strategy for Winning the Capitalist Cold War" outlines what to do to improve the American model.
The answer to inflation is not to ease tariffs. It is to stop with the band-aids. The US should see inflation as the motivation to invest in domestic production; tariffs as the market opportunity to do so.
The United States needs to reclaim control over international industry. Doing so requires working with its allies and partners. But the United States will have to do so from the ground up, through countless compromises, and skirmishes, with the private sector. This is not an efficient method. But it is the only way to be effective.
The answer to inflation is not to ease tariffs. It is to stop with the band-aids. It is to keep tariffs up, but also to take the proactive measures that they are supposed to encourage: The US should see inflation as a push to invest in domestic production; tariffs as the market opportunity to do so.
The optimistic take is first, that Washington sits at the perfect inflection point to adjust economic policies that contributed to this imbalance – and, second, that early indications suggest the private sector may already be taking the lead, whether Washington adjusts or not.
What if, in addition to immediate, demand-side monetary policy quick fixes, Washington was to set about investing in production of critical inputs, manufacturing facilities, and improved logistics systems? It’s entirely possible, and necessary.
We need a gameplan for domestic resilience so that today's inflation crisis does not continue indefinitely and does not recur. We need to rethink our permissive approach external dependencies; to make sure that we can make more – and more of what is foundational to economic functioning -- at home.
In its board rooms and on the ground, Amazon is deliberately adopting frameworks and investments designed to foster long-term competitiveness, even what that comes at the expense of quarterly returns or shareholder enthusiasm.
China’s COVID-19 debacle could be precisely the impetus the US needs to get serious about rebuilding supply chains. These should provide markets a prod to start pricing in the real costs of offshoring – and Washington justification for dedicated, emergency investments in domestic industry.