The event was attended by over 100 guests and a large web-based audience. It began with an introduction from CSIS Senior Adviser and Scholl Chair in International Business, William Reinsch. His introduction was followed by a keynote speech from Hinrich Foundation Founder and Chairman, Merle Hinrich, who gave a brief overview of the book and underlined its importance in the context of today’s complex trade landscape.

“This book provides an excellent and clear message on how we have reached the trade confrontations that we have today between China, the United States and the world,” Hinrich said. “At the Hinrich Foundation we believe that research like Stewart’s can assist with understanding and improvement in rules of engagement,” he added.

Author Stewart Paterson proceeded to give a detailed presentation on the book. The book describes the unexpected outcomes of a Western policy of engagement with China, which led to the country’s accession to the WTO in 2001 without critical economic reforms, such as a floating exchange rate and open capital account.

Paterson explained how the supply-side shock created by China’s increasing and deflationary exports, coupled with the inflation-targeting response of Western central banks, led to a fall in real incomes for the many in the West and a rise in asset prices for the few, raising questions about the effectiveness of Western liberal economic models.

Following his presentation, Paterson was joined by other experts to discuss the policy ramifications of China’s WTO accession for the United States, and the potential paths forward for dealing with the challenges China poses for the multilateral trading system.

Panelists included:

Stewart Paterson, Author, “China, Trade and Power: Why the West’s Economic Engagement Has Failed”
Brad W. Setser, Steven A. Tananbaum Senior Fellow for International Economics, Council on Foreign Relations
Pieter P. Bottelier, China Studies Scholar, Johns Hopkins School of Advanced International Studies
William Alan Reinsch, CSIS Senior Adviser and Scholl Chair in International Business (moderator).

The Hinrich Foundation hopes that work such as this book will help create stronger institutions and better rules of engagement for improving global trade, making it more sustainable with optimized outcomes for all participants.