Some reads

Interesting piece by Irwin Stelzer:

The sound and fury notwithstanding, the threatened 25 percent tariffs (totaling $50 billion on some 1,300 Chinese products) and China’s retaliatory tariffs could not cripple either the $19 trillion U.S. economy or the $12 trillion Chinese economy. Hopes that China would become a rules-abiding member of the trading system have been dashed. Jamie Dimon, CEO of JPMorgan Chase and a free trader to his core, says that China, now the second largest economy in the world, should no longer be preferentially treated by the World Trade Organization as if it is the developing country it was when welcomed to membership — largely at the urging of the United States.

The real battle will come when America decides not to allow China to dominate the industries of the future by flaunting the rules that have governed the international trading system since the end of World War II. Xi’s “Made in China 2025″ plan calls for subsidizing firms in industries of the future with cash and cheap bank credit; forces U.S. firms to turn their intellectual property over as the price of doing business in China; pushes state-owned or dominated companies to acquire technology-rich American companies; and steals American IP valued at as much as $600 billion every year. Those tactics, unopposed, can easily reduce America to second-class status in the next decade.

Also, VDH suddenly becomes a fortune teller.

Leave a Reply