Carnegie Endowment for International Peace
While foreign investment usually benefits developing economies and creates local economic benefits in advanced economies, it generally does not benefit advanced economies on the whole except in very limited cases. On the contrary, foreign investment in advanced economies is more likely to lead to higher unemployment or rising debt.
The new round of tariffs has put U.S.-China trade negotiations on hold. Just a month ago, a deal to end the trade war was deemed likely. So why did this process unravel so quickly and what is the way going forward?
Washington and Beijing are not in a new cold war yet, but there is definitely a cold-war mentality at work that may diminish both sides’ capacity to manage crises effectively.
Whether President Trump is misguided in pursuing tariffs and using them as leverage with the Chinese government, America’s continued drive to levy penalties is less about fixing a trade problem than about changing China’s investment rules.
As South Korea pursues engagement with North Korea, thinking about unification through a stabilization framework can provide critical clues on navigating major challenges that unification might bring.
The U.S.-China “trade war” may give way to a “tech war” as regulators and firms battle over emerging technologies, standards, and whether America or China will dominate future industries. Outside Washington, the relationship between Chinese and American business is complex and changing fast.
China’s global strategy has been met with strong pushback. Despite the recent Trump-Xi meeting, the U.S.-China relationship is unlikely to show sign of improvement for quite some time. Where does this leave Europe?
Questions remain about how committed the Chinese Communist Party (CCP) is to continue “reform and opening” even as Xi seeks to advance CCP control in every sector.
The bottom line is that bridging to G7 nations such as Italy and France and getting global recognition for the BRI are now top Chinese priorities. China wants to be seen as the new champion of multilateralism.
China’s 2001 entry into WTO was an epochal step in China’s reform and opening up. As the transition ended in December 2016, China had skyrocketed to become the world’s first trading nation.