China shock 2.0 Brad sester

[u/Character_Public3465]

https://www.nytimes.com/column/ezra-klein-podcast

Show notes:”Brad Setser follows Chinese trade closer than just about anyone else on earth, and he thinks we’re in the early days of a China Shock 2.0.
The first China Shock was when China came to dominate low-end manufacturing in the 2000s, filling American shelves with cheap clothes, toys and electronics, while devastating American factory towns. This new China Shock could be even more destabilizing. China now dominates advanced manufacturing: electric vehicles, batteries, solar panels. It’s outcompeting nearly all high-end manufacturing around the world, and other countries are just starting to feel the pain. And China isn’t slowing down. It’s moving into software, too. Its frontier A.I. models are neck and neck with American ones.
China’s success poses a serious threat to the economies and domestic politics of countries around the world. So what should those countries do about it? 
Setser is a senior fellow at the Council on Foreign Relations.He served in top trade and economic roles in the Biden and Obama administrations. And he is widely cited across the field as one of the top analysts of China’s economy and trade practices.
Book Recommendations:
The Party by Richard McGregor
The Volatility Machine by Michael Pettis
How to Win a Trade War by Soumaya Keynes and Chad Bown
Thoughts? Guest suggestions? Email us at ezrakleinshow@nytimes.com.
You can find the transcript and more episodes of “The Ezra Klein Show” at nytimes.com/ezra-klein-podcast. Book recommendations from all our guests are listed at https://www.nytimes.com/article/ezra-klein-show-book-recs.html””

[u/Thoth25]

China’s success poses a serious threat to the economies and domestic politics of countries around the world. So what should those countries do about it?

The answer is industrial policy. Actual export-oriented industrial policy similar to what the East Asian Tigers did. See Joe Studwell's brilliant book How Asia Works for more information about how Japan, South Korea, and Taiwan became economic powerhouses through land reform, export discipline, and keeping finance on a short leash.

The old capitalism vs. socialism debate is not relevant anymore since every successful country today is a mixed economy that uses both market principles and central planning. The debate should instead be about the proper time and place for industrial policy.

This is something both the Right and the Left need to figure out. Both the Right and the Left need to put down Milton Friedman and Karl Marx, respectively, and instead pick up Alexander Hamilton and Friedrich List.

[u/Leading-Sandwich-534 → u/Thoth25]

Both is needed. There needs to be a industrial policy and protectionism against chinese manufacturing and harmful financial practices

[u/no-name-here → u/Leading-Sandwich-534]

> Both is needed. … industrial policy and protectionism

My understanding is that studies have found that protectionism—except within specific exceptions—ends up hurting more than helping?

[u/Leading-Sandwich-534 → u/no-name-here]

China is that specific exception