Economist Paul Krugman predicted a global recession after President Trump was elected. He was wrong. Most economists predicted a British recession after the Brexit vote. They were wrong. Economists and journalists are now predicting dire economic consequences from Trump’s tariffs on China. In several months, we will see that they are wrong too. Op-ed originally appeared in The…
China’s investment in sensitive U.S. technology has the Trump administration so worried that it imposed tariffs on Chinese tech goods on Tuesday, while lawmakers are looking for ways to bar similar future investments. Why now? One reason is a recent Pentagon white paper that warns about Beijing’s plans to appropriate made-in-America tech. [BY PATRICK TUCKER | April 6, 2018 |…
China has installed equipment on two of its fortified outposts in the Spratly Islands capable of jamming communications and radar systems, a significant step in its creeping militarization of the South China Sea, U.S. officials say. [Michael R. Gordon and Jeremy Page | April 9, 2018 | WSJ] The move strengthens China’s ability to assert its extensive territorial…
Every time there is some kind of dispute between China and the United States, a litany of voices emerges to warn of spiking interest rates. These warnings are wrong-headed. And this post is going to explain why. Beijing is not Washington’s banker [Edward Harrison | April 7, 2018 | Credit Writedowns] We went through this…
President Donald Trump’s trade actions on aluminum and steel and his confrontational stance with China on broader trade and investment issues have allies alarmed about both a trade war and the future of the World Trade Organization. It is important to be clear that the rise of China made that institution far less relevant long…
In the 2016 election, Hillary Clinton, Bernie Sanders, and Donald Trump all recognized that workers and communities have lost trust in the NAFTA approach to globalization. They all said we should manage globalization differently. [Stan Sorscher | April 6, 2018 | The Stand] Over the last few months, Canada, Mexico and the U.S. have had seven meetings…
President Trump threatened a heavy counterpunch against Beijing Thursday evening, saying he may impose tariffs on $100 billion worth of Chinese goods on top of the Section 301 tariffs his administration is already considering to combat what the U.S. says are illegal intellectual property and technology transfer practices. [Jack Caporal | April 5, 2018 |…
Washington, DC. The Coalition for a Prosperous America (CPA) today congratulated the Trump administration for standing firm against China’s mercantilism by announcing an additional $100 billion of new potential tariffs, and for instructing the US Department of Agriculture to implement a plan to protect farmers and ranchers from economic aggression. Last month, the administration concluded an…
Washington, D.C. – U.S. Trade Representative Robert Lighthizer today released the following statement in support of the President’s direction that the Office of the United States Trade Representative (USTR) consider additional measures under Section 301 of the Trade Act of 1974 regarding China’s unfair acts related to technology transfer, intellectual property, and innovation: Office of the…
Investment-driven growth can broadly occur in the form of one of two models, each with a different way of treating wages and household income. One model, which I will call the high-wage model, incorporates and encourages high wages as the engine behind growth and productivity gains. I will call the other model the high-savings model. In this…