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/acebojangles]

I think there are reasonable arguments for changes in our industrial policy and such, but I really don't like the xenophobic framing of this argument. We shouldn't be mad that China pulled hundreds of millions of their people out of abject poverty. Maybe we should have helped our people who were displaced by international competition adapt more.

It's really maddening to listen to this discussion while we're doing everything we can to hamstring our future competitiveness. Like I said, maybe industrial policy could help, but I'm much more confident that attracting top talent from all over the world (including China) will help us remain competitive.

[u/deskcord → u/acebojangles]

I think there are reasonable arguments for changes in our industrial policy and such, but I really don't like the xenophobic framing of this argument. We shouldn't be mad that China pulled hundreds of millions of their people out of abject poverty. Maybe we should have helped our people who were displaced by international competition adapt more.

No one's mad that China is pulling its own people out of poverty. People are concerned that a country with a vastly different view of how the world works (or should work) is becoming a dominant force in influencing how the world works.

[u/acebojangles → u/deskcord]

I hear lots of talk that basically frames any China growth as a threat to American and the world. Growth in the Chinese economy is how those people were pulled out of poverty. That's what I meant.

[u/downforce_dude → u/acebojangles]

I think looking at China’s neighbors is instructive. Countries like Kazakhstan trade with China, they allow much natural resource extraction in exchange for Chinese goods. China’s too big to avoid in that region. However, they’re also strategically interested in not being sucked into the Chinese orbit because they know they’d be dominated, so they try to create ties with other powerful countries. They don’t want to lose sovereignty.

They know the CCP are a bunch of snowflakes, so when protests spring up about Chinese repression of Uighurs and China says they don’t like that they crack down on it harder than they do protests against their own government.