We Warned About the First China Shock. The Next One Will Be Worse. | David Autor & Gordon Hanson

Posted by gauchnomics

5 Comments

  1. [archive](https://archive.is/MCbfh).

    key quote:

    > Today, [China] is aggressively contesting the innovative sectors where the United States has long been the unquestioned leader: aviation, A.I., telecommunications, microprocessors, robotics, nuclear and fusion power, quantum computing, biotech and pharma, solar, batteries…. What does better look like?…

    > First, policymakers must recognize that most of our difficulties with China are shared by our commercial allies. We should be acting in unison with the European Union, Japan and the many countries with which we have free trade agreements, such as Canada, Mexico and Korea, rather than punishing them with sky-high tariffs for the gall of selling us products we want to buy….

    > These new ecosystems will need supporting infrastructure: reliable and inexpensive energy generation, rare earths, modern shipping and universities with vibrant STEM programs. This will mean pulling back from subsidizing legacy sectors such as coal and oil, restoring federal support for scientific research and welcoming rather than demonizing the talented foreign technicians who would love to help the country advance. At this point, we’d advocate a politically insulated strategic investment capacity in the United States, something like the Federal Reserve, but for innovation rather than interest rates.

  2. Plastic-Mushroom-875 on

    Sorry we can’t hear your warnings over the USA taking a chainsaw to every advantage it has

  3. We’re so cooked. Trump has thrown away every advantage we have and China is focusing exactly where they should be.

  4. Wouldn’t be surptised if people in the Trump admin had the redditor-tier take that China only produces cheap crap whose only advantage is its low price (So it can be easily stopped with tariffs), that is only 2 weeks away from collapsing.

    China’s position is admittedly far from ideal, but Trump is doing anything but exploting its weaknesses.

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