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Shenai looks beyond short-term measures, such as sanctions and investment restrictions, as the best ways of combating Chinese global influence. Instead, she suggests that a return to free-market values and a commitment to getting America’s political and economic house in order could be the key to the US maintaining its position as the global economic powerhouse it has proven itself to be.
One short-term measure gaining significant traction is an increase in industrial policy, a stance that former President Donald Trump articulated in his recent proposal to enact a 10 percent tariff on all foreign imports. Kyle Pomerleau takes a look at this proposal and discusses why it is rooted in a misunderstanding of how tariffs affect trade. Fewer imports would lead to fewer exports, leaving the US with lower economic output.
At the core of these trade discussions lies the question of how much China’s ongoing economic turmoil will affect the global economy. Desmond Lachman writes that any belief that China’s woes will not affect other nations is naïve. In particular, Lachman argues that Jerome Powell and the Fed must recognize that China’s economic crisis will most definitely harm the global market.