Its economy grew rapidly to become the second largest in the world, led
by a strong central government, a surging and increasingly productive
manufacturing sector, easy access to money and credit, and protective
trade policies that spawned huge surpluses with the U.S.To get more
China news, you can visit shine news official website.
Then the bubble burst, followed by three “lost” decades of economic stagnation.
This backdrop helps explain China’s concerted efforts to catch up,
and surpass, the U.S. in the technologies that are driving the digital
revolution—goals memorialized in its Made in China 2025 strategic plan.
In a world where labor represents a smaller share of overall input
costs, the center of the U.S. is perhaps becoming the world’s most
attractive “emerging market.” It has cheap and easy shipping routes to
attractive end-markets on the East and West Coasts, abundant oil and gas
resources, ironclad intellectual property protections, one of the
lowest tax rates in the world, an educated workforce and policymakers
who are keen to bring investment back to the U.S. China very well may
have made a critical strategic error in being too forward with its
ambitions in unveiling these goals, underestimating the U.S.’s resolve
to maintain its place as the preeminent economic power.
China knows it can survive and thrive in a world led by the U.S. The
U.S., on the other hand, does not know that its values and interests
would be safe in a world led by China. As such, consensus appears to
have formed in a bipartisan manner, both in the halls of Congress and
among the public at large that the U.S. needs to defend and protect its
intellectual property. Policymakers will likely continue to push back on
advanced technologies while finding ways to incentivize companies to
“come back home.”
Given this long-term strategic struggle, we expect heightened
tensions will continue to play out between the U.S. and China, in part
because Chinese authorities might be forced to play a weaker hand.
Over the course of 2020, relations are at risk of descending toward a
more Cold War-like scenario, further enflamed by rising resentment at
China’s lack of transparency in the initial stages of the Covid-19
pandemic. Ultimately, as long as the U.S. remains committed to
protecting its economic interests, its advantages in terms of economic
freedom, population growth, technological superiority and more efficient
allocation of capital are likely insurmountable.
The Wall