Posen recommends economic diplomacy over zero-sum confrontation
2 Sep 21 · 4d ago · 2 articles · 1 post · 1 comment · 2 sources · development 2 of 2
Posen proposes the U.S. pivot strategy: pursue increased imports of key strategic goods and Chinese foreign direct investment rather than tariff escalation. He argues economic relationships need not be zero-sum, that both nations benefit from trade and diversification, and that Beijing, comfortable with the status quo, has little interest in escalation that would harm its own economy.
“The U.S.-Chinese economic relationship does not have to be played as a zero-sum game. The benefits from trade and diversification for both economies remain substantial.”
Adam S. PosenAdam S. Posen Peterson Institute president, analyst
Donald Trump U.S. President
Xi Jinping Chinese leader
Scott Bessent U.S. Treasury Secretary
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1 outlet China Still Has What America Needs
first by Foreign Affairs, 5d ago
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Through the inflation reduction act, subsidies for EVs could have been limited to EVs with magnets sourced from friendly nations or partner nations and that would have spurred magnet production and rare earth refining either on US soil or allied nations.
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