March 2010 April 2010 May 2010 June 2010 July 2010
August 2010
September 2010 October 2010
November 2010
December 2010
January 2011
February 2011 March 2011 April 2011 May 2011 June 2011 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 April 2019 May 2019 June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 February 2020 March 2020 April 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 January 2021 February 2021 March 2021 April 2021 May 2021 June 2021 July 2021 August 2021 September 2021 October 2021 November 2021 December 2021 January 2022 February 2022 March 2022 April 2022 May 2022 June 2022 July 2022 August 2022 September 2022 October 2022 November 2022 December 2022 January 2023 February 2023 March 2023 April 2023 May 2023 June 2023 July 2023 August 2023 September 2023 October 2023 November 2023 December 2023 January 2024 February 2024 March 2024
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
30
31
News Every Day |

What Xi And Biden Forgot To Mention On The Economy – Analysis

Story 508985369

By Tom Westland*

According to the official readout, in their virtual summit this week, US President Joe Biden and Chinese President Xi Jinping discussed ‘managing competition responsibly’. For Biden, the talks were a chance to press Xi on China’s actions in Hong Kong and its assertive posture in the Taiwan Strait, as well as human rights abuses in Xinjiang. Xi, for his part, warned Biden against leading the United States into a new Cold War against China.

Missing on the agenda was any serious discussion about the problems facing the global economy as it recovers from the deep recession of 2020.

Aside from some worthy breakthroughs, like the agreement to hold bilateral ‘stability’ talks on nuclear issues, it’s not clear what Xi’s and Biden’s responsibly managed competition will look like. If it looks anything like the managed trade that now governs the economic interactions of world’s two largest economies, then ‘competition’ is a wild misnomer. The trade war between the two countries, and the ensuing ‘Phase One’ trade deal, represent the worst kind of anti-competitive policy kludge, designed to protect politically favoured industries in the United States and kicking out Australian and Canadian farmers and gas suppliers who can produce more efficiently than their American counterparts. In economics as in sport, competition is best managed by neutral umpires, not by the participants themselves.

The failure of the two presidents to discuss what they could do to shore up the economic recovery is a big, missed opportunity. There is a desperate need for bolder leadership that tackles the short-term pressures and – just as importantly – the longer-term structural fault lines. The global economy was looking decidedly sickly even before COVID-19 struck. The Brexit referendum in June 2016, and the election of a populist protectionist to the White House later that year, marked the start of an inward turn in the advanced economies. The yield curve for US Treasuries inverted in May 2019, usually a reasonably reliable harbinger of recession. The structural damage to the world economy inflicted by Britain’s exit from the European Union and the tariffs put in place under President Trump has been masked by the much greater immediate destruction wrought by the pandemic, but as the recovery gains pace, it will become increasingly difficult to ignore.

Though the Biden administration has more or less made peace, though on the wrong terms, with Europe — lifting the Trump-era tariffs but imposing quotas on steel and aluminium exports from the bloc —it has stuck with Trump’s belligerent posture towards China. It has maintained tariffs on a broad swathe of Chinese imports and continues to hold back exports of semiconductors in the name of national security – even though the likely long-run effect will just be to stimulate semiconductor manufacturing elsewhere.

The effect of both of these policies is to restrict the supply of consumer goods in the United States. That isn’t the only reason for the US experiencing the highest inflation rate since George Bush Sr was president. Compared to the ‘Great Resignation’ of workers not wanting to return to low-paying jobs and the logistical issues at American ports, though, it is a problem that is easily fixed – at least in theory. The domestic politics of removing the Trump tariffs might be tricky, but Biden could use his power to issue broad exemptions that would render the tariffs a dead letter. Biden will also remember the political fate of the last two one-term Presidents, both of whom presided over economic contractions that stemmed in part from tighter monetary policy in the face of inflationary pressures.

Inflationary pressures, in the United States and elsewhere in the global economy, may be only temporary, and for the most part central bankers are choosing not to overreact by precipitously raising rates and choking off the economic recovery. But the task is made harder by senseless trade restrictions that have not yielded any tangible security or economic benefits to the countries imposing them. Ever since the dismantling of the Corn Laws, economists have known that removing barriers to international trade lowers prices; politicians, though, captured by special interests, often have to be dragged screaming and kicking to recognising it.

Though he touched on it only lightly in the summit, President Xi and his advisers would be well aware of the possible impact on the Chinese economy of policy tightening in the United States and other advanced economies: among other things, a depreciation of the yuan, which would make it harder for Chinese borrowers, like troubled real estate giant Evergrande, to service dollar-denominated debts. Had Trump won last year’s election, he might have gloated at the thought of a hard landing for the Chinese economy: Biden’s team is smart enough to know that a recession in China would knock the wind out of the global economy, too.

The failure of the two presidents to come up with a strategy to drag the world out of the economic doldrums during their summit may be hardly surprising, given the political constraints, but it is a major missed opportunity. Australia, and the world more generally, is best served by managed political and economic cooperation between Chinese and American leaders and intense trade competition between their businesses.

Instead, the small victories of the summit notwithstanding, we seem to be in line for more political competition and trade collusion. The hard heads in Asian capitals should not be fooled by policy illywhackers purveying managed trade solutions in Washington or Beijing.

*About the author: Tom Westland is Research Director of the Asian Bureau of Economic Research in the Crawford School of Public Policy at The Australian National University.

Source: This article was published by East Asia Forum

Москва

Шапки женские вязаные на Wildberries, 2024 — новый цвет от 392 руб. (модель 466)

Top 10 Emmanuelle Seigner Movies

Top 5 Websites to Watch FREE Movies - TV Shows (No Sign up!)

The 10 Intense New Action Movies on Netflix That Left Me on the Edge of My Seat!

Top 10 Love Affair Movies of the 2000s and 2010s

Ria.city






Read also

He Would Be More Inclined To – Uli Hoeness Makes Big Claim On Liverpool Target Xabi Alonso

Economic Impact Report | Munster v Crusaders

Universal Music Group turns to Spotify after pulling catalogue from TikTok

News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

The 10 Intense New Action Movies on Netflix That Left Me on the Edge of My Seat!

Today24.pro — latest news 24/7. You can add your news instantly now — here


News Every Day

The 10 Intense New Action Movies on Netflix That Left Me on the Edge of My Seat!



Sports today


Новости тенниса
ATP

Хачанов победил Черундоло и пробился в 1/8 финала турнира ATP в Майами



Спорт в России и мире
Москва

«Радио Зенит» – информационный партнер форума «Мы вместе. Спорт»



All sports news today





Sports in Russia today

Москва

«Радио Зенит» – информационный партнер форума «Мы вместе. Спорт»


Новости России

Game News

Для Wuthering Waves проходит предрегистрация в App Store и Google Play


Russian.city


Українські новини

Хризантема - вродлива квітка, що вимагає особливого догляду


Губернаторы России
Зенит

«Радио Зенит» – информационный партнер форума «Мы вместе. Спорт»


Московская область - Изготовление металлических навесов

Оставить за кадром: соцсетям и блогерам хотят запретить публикации жестокого видео

Шапки женские вязаные на Wildberries, 2024 — новый цвет от 392 руб. (модель 466)

Педагогическая дилемма: почему учителя не хотят работать в школах


Певец Александр Ревва попросил не трогать его семью после слухов об эмиграции

Певица Любовь Успенская назвала россиян своей семьей

Джиган раскрыл свой вес и описал причину похудения словами «надоело быть жирным»

"Прости!!!": Пугачева попросила прощения у Манижи


Виктория Азаренко вышла в полуфинал турнира WTA-1000 в Майами

Теннисист Медведев вышел в полуфинал турнира в Майами, обыграв Харри

Теннисистка Касаткина отреагировала на высказывания Винер о россиянах

Азаренко вышла в полуфинал турнира WTA-1000 в Майами



Топливному компромиссу между Украиной и Азербайджаном пришел конец?

Пассажир рейса Москва — Пермь попал в реанимацию

«Радио Зенит» – информационный партнер форума «Мы вместе. Спорт»

Шапки женские вязаные на Wildberries, 2024 — новый цвет от 392 руб. (модель 466)


Новые цены на жилье утвердили в России

Shot: рейс Turkish Airlines вернулся во Внуково из-за криков и танцев пассажира

Финал всероссийского студенческого трека Олимпиады Кружкового движения НТО «Летающая робототехника» 2024

Энергетические поля компенсируют растущие потребности в электроэнергии


Сотрудники ГИБДД провели акцию «Безопасный двор» в Ленинском городском округе

«Яндекс» продают за 475 млрд рублей

Благотворительный фонд «Свет в руках» проведет Всероссийскую акцию «Росток памяти»

Спортсменки из Электростали приняли участие в учебно-тренировочном мероприятии в Китае



Путин в России и мире






Персональные новости Russian.city
Борис

Ритуальный агент Борис Свистунов: комплексная поддержка в организации похоронных услуг в Санкт-Петербурге и Ленинградской области



News Every Day

Top 10 Emmanuelle Seigner Movies




Friends of Today24

Музыкальные новости

Персональные новости