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Is this what US-China decoupling means?
Published 23 August 2022
As tensions between the United States and China grow, analysts talk about a “decoupling” of the two economies. But what does decoupling mean in practice? What can governments do to improve supply chains and regulations for greater economic development? Who controls the future of green tech? And how does trade impact real people and real economies? Check out our new reading list to catch up with the latest articles and reports on global trade.
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US-China decoupling | Economic relations with Taiwan | Latin America and Asia | Supply chain efficiency | Future of green tech | Trade and Inflation | Implications of trade | More research from Hinrich Foundation
Tensions between the US and China are affecting decisions companies make about where to invest and structure their supply chains vis a vis third countries. South Korea is exposed to risks related to US-China tensions, the Peterson Institute for International Economics warns, and Chinese companies are choosing to invest in Mexico to avoid US tariffs on Chinese exports, Nikkei Asia reports.
The US continues to impose restrictions on technology exports to China, but are those restrictions enforced and effective? The US Government approves nearly all tech exports to China, the Wall Street Journal reports.
As the US and China struggle to reach an agreement over information that US-listed companies are required to disclose, five major Chinese companies announce that they will delist from US exchanges, per Bloomberg. Dexter Tiff Roberts argues that this move marks the end of an era for Chinese corporate engagement in the US.
- South Korea should prepare for its exposure to US-China technology tensions – Mary E. Lovely and Abigail Dahlman, Peterson Institute for International Economics, July 2022
South Korea’s deep economic engagement with China may complicate its ability to export to the US.
- Chinese factories flock to Mexico, crossing U.S. border to avoid tariffs – Kosuke Shimizu and Yusuke Hinata, Nikkei Asia, 17 August 2022
Chinese investments in Mexico soar as companies seek to avoid US tariffs.
- U.S. Approves Nearly All Tech Exports to China, Data Shows – Kate O’Keeffe, The Wall Street Journal, 16 August 2022
Despite identifying technology trade with China as a national security concern, the US Commerce Department approves nearly all requests to sell to China.
- China State-Owned Giants to Delist From US Amid Audit Spat – Lulu Yilun Chen and John Cheng, Bloomberg, 12 August 2022
Five Chinese companies with a combined market capitalization of $300 billion exit US exchanges.
- Giant Chinese companies delisting from U.S. exchanges signals the end of an era – Dexter Tiff Roberts, SupChina, 19 August 2022
The delisting of five major Chinese companies could portend a greater pullback from US listings.
As economic engagement between the US and Taiwan deepens with their joint announcement of a new negotiating mandate, how will China respond? The Wall Street Journal reports on what the negotiations are expected to encompass, and the implications of China’s response to date. While China made a strong show of military force in response to US Speaker Pelosi’s recent visit, their economic retaliation against Taiwan has been modest. What does their response reveal about China’s economic dependence on Taiwan? Jeremy Mark answers this question for the Atlantic Council.
- U.S., Taiwan to Begin Formal Talks for Trade, Investment Pact This Fall – Yuka Hayashi, The Wall Street Journal, 18 August 2022
The US and Taiwan will soon begin formal negotiations on a trade and investment agreement.
- U.S.-Taiwan Initiative on 21st-Century Trade: Negotiating Mandate – 17 August 2022
The US and Taiwan aim to negotiate agreements covering 11 areas of trade and investment.
- The uncomfortable economic truth behind Xi Jinping’s Taiwan threats – Jeremy Mark, Atlantic Council, 11 August 2022
Beijing’s economic retaliation appears calibrated to keep cross-strait economic relations largely intact.
Will domestic politics hinder expanding Latin American trade engagement with Asia? Sebastian Cortes, writing for the Asian Trade Centre, explains how Latin America may have only a brief window to accede to the CPTPP.
- Latin America and the CPTPP: a short window of opportunity – Sebastian Cortes, Asian Trade Centre, 17 August 2022
Costa Rica becomes the latest Latin American country to seek CPTPP membership.
The absence of cold chain infrastructure in Africa hinders economic development, SME growth, trade opportunities, and public health. What is being done to develop this infrastructure? Nicola Twilley, writing in The New Yorker, looks at the promise of refrigeration. Meanwhile, the Third Way analyzes how improved trade facilitation measures can save billions in export costs and grow thousands of US jobs.
- Africa’s Cold Rush and the Promise of Refrigeration – Nicola Twilley, The New Yorker, 15 August 2022
What role can cold chains play in trade and economic development?
- Reducing the red tape around supply chains – Gabe Horwitz, Third Way, 25 July 2022
A new analysis estimates that the US could save $88 billion in export costs and gain 987,000 jobs through improved trade facilitation measures.
Green technologies depend on certain key minerals, and who controls those minerals controls the future of green tech growth and development. The Peterson Institute for International Economics examines this question in a new study.
- Green energy depends on critical minerals. Who controls the supply chains? – Luc Leruth, Adnan Mazarei, Pierre Régibeau, and Luc Renneboog, Peterson Institute for International Economics, August 2022
PIIE examines who controls critical minerals and the issues arising from them.
Are China’s economic headwinds a silver lining for inflationary pressures in the rest of the world? Matthew C. Klein explains in the Financial Times.
- Beijing is tanking the domestic economy – and helping the world – Matthew C. Klein, Op-ed: Financial Times, 17 August 2022
Weakening Chinese import demand could have an unintended upside for inflation in the rest of the world.
How does trade impact real people and real economies? Planet Money takes us back to the classroom in its latest podcast focused on trade and the better life.
- Planet Money Summer School 6: Trade & The Better Life – Stacey Vanek Smith, Planet Money Podcast, 17 August 2022
Planet Money uses personal stories about the impact of trade to teach trade basics.
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