The latest move on China by the Biden administration is dripping with hypocrisy. Need to protect American's personal data from the dangers of Communism, but don't you worry ..... everything is fine in the good ol' U S A. For years we’ve heard of the threat of Tik Tok and that it is a tool of the Chinese government to “undermine American democracy”. While I am certain that there is a nugget of truth in that way of thinking, the entire thesis behind banning Tik Tok in the US is nothing more than the application of regulatory capture by major American social media companies to protect their business. Tik Tok is, and has been, eating the ad dollars which used to go to FaceBook, Google and others. Kneecap a competitor by any means – including the application of a “Red Peril” – and the ad spend flows back. It’s business, pure and simple. https://www.reuters.com/technology/biden-crack-down-us-data-flows-china-russia-2024-02-28/
China is the first large and over-indebted economy to have (1) recognized that there is a problem and (2) made the decision to attempt to address the problem. Keynesian thinking is all but gone, but how to navigate the way forward is still totally uncertain. It is also the case that key (and quite powerful) constituencies would rather go back to the debt fueled growth model and are resisting the necessary change. For those interested, continue to monitor all things “China economy” over the next several years. It will provide critical context for what lays ahead for all G7 nations. Then again, the primary difference will be that China looks to be taking a proactive stance on addressing the issue where as the G7 nations may have their hand forced with not much ability to do so thoughtfully.
South China Morning Post
Why China may have to ‘push harder’ to maintain its economic growth in 2024
As China prepares for its annual legislative sessions, the methods used last year to prop up economic growth appear less reliable than before, prom...
The gentrification of Shanghai in real time. image
Have also returned to work here in Shanghai to the following, and latest, Foreign Affairs piece. The Taiwan Catastrophe What America—and the World—Would Lose If China Took the Island For as long as I've lived here, Chinese leadership has sabre rattled on the subject of Taiwan. Thus far, no action has actually be taken. Of course "this time may be different", but what has actually changed over time is the American positioning on Taiwan, cross straight ties. For two decades leadership out of Washington didn't care one iota about Taiwan. What's changed? Depends on who you ask, but my concern is more centered on an American miscalculation than that from Beijing.
Foreign Affairs
The Taiwan Catastrophe
What America—and the world—would lose if China took the island.