Tag: Economics (Theory and Philosophy)

The Next China Shock Is Here

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This is an edited transcript of “The Ezra Klein Show.” You can listen to the episode wherever you get your podcasts. The biggest economic story in the world right now is China’s growing dominance across advanced manufacturing sector after advanced manufacturing sector — from electric vehicles to batteries to solar panels to software like A.I. and open models, where they’ve become a world leader. What is happening here is very different than what we call the first China Shock, when China became a big exporter of things that were not…

America Was Being Played. The Bessent Doctrine Says Those Days Are Over.

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Treasury Secretary Scott Bessent delivered a remarkably important speech on June 23 at the Economic Club of New York. Yet neither Wall Street nor most of the economic profession seems to have paid it enough attention. By laying out what until now seemed more like haphazard policy measures, Mr. Bessent put down a marker for how the United States plans to operate in a changing global economic system. In the process, he elevated both the scale and the scope of a systemic change that started in earnest during President Trump’s…

Is China’s Economy Now Bigger Than America’s?

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My most recent column was about the troubles facing the Chinese economy, which appear to be serious. However, I was careful to acknowledge that China’s three-decade economic miracle has made it a bona fide economic superpower and that its current problems aren’t likely to change that fact. But how super is China’s power, anyway? Is it now the world’s biggest economy, or does it still lag behind the United States? Yes. You see, it depends on what measure you use. And there is no single measure that is clearly right.…

What Japan’s Economy Can Tell Us About China

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I hope that at least some of my readers are too young to remember this, but in the early 1990s many Americans — especially pundits, but also business leaders and a fair share of the general public — were obsessed with the rise of Japan. Two of the best-selling books of 1992 were Michael Crichton’s novel “Rising Sun,” about what he imagined to be the growing, sinister influence of Japanese corporations, and Lester Thurow’s “Head to Head: The Coming Economic Battle Among Japan, Europe and America.” It’s easy to forget…

Three Things Americans Should Learn From Xi’s China

Chin@Strategy

About four decades ago, Chinese Communist Party officials scoured the world for best practices, which they cautiously piloted to create the economic miracle that their country showcases today. These days, though, the Communist Party champions Chinese solutions, and not just for China but also for the rest of the world. Xi Jinping, who just received an unusual third term at the helm of the world’s most populous country, embodies a far more confident China that has begun to portray itself as an alternative to the West. Creating a Chinese version…

What Game Theory Says about China’s Strategy

Chin@Strategy

On March 19, 1956, The New York Times carried an interview with Matyas Rakosi, who was described as “Hungary’s ebullient Communist boss.” Rakosi said that his enemies had accused him of using “salami tactics,” that is, cutting away all opposition slice by slice. He didn’t deny it: “That is the job of any good political party — including the Communists,” Rakosi said. Salami-slicing may have originated as a metaphor in Hungary, but in the decades since, it has entered the vocabulary of politicians, military tacticians and editorial writers far from…