by Brad W. Setser
America Needs a “Cold War” Strategy for China
Breaking China’s Hold
Dan Blumenthal and Derek Scissors | June 2023
- Unlike many commentators, Xi Jinping does not emphasize economic growth. He stresses China’s system as best suited to win the long-term competition with the US. His strategy is to use state tools to build economic leverage and political advantage. Technology is a central component.
- As in its military strategy, China’s economic strategy is “asymmetric,” taking advantage of a US system founded on openness and wealth creation. In contrast, China protects large firms at home, coerces technology transfer, then seeks to eliminate leading foreign competitors.
- The US has done little to blunt Chinese predation, indirectly supporting it with money and technology. If the most innovative American companies lose intellectual property and market share without consequence, China will control more sectors of the global economy.
As usual, the debt ceiling drama came and went. But drama obscured the important fact that US debt is still too large and growing to much higher levels on the path it is on. It is a problem that needs to be addressed.
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By Henry Grabar | SlateFrom the East and West Coasts to the Midwest, cities around the country are struggling to manage the financial implications of a “death spiral:” flagging transit ridership, reduced traffic in business districts, and an increasingly remote workforce.
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