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Cato Podcast

How the U.S. Failed to Adjust to China's Economic Rise

Cato Podcast

Cato Institute

Immigration, News, News Commentary, Peace, 424708, Markets, Government, Libertarian, Policy, Politics, Cato, Defense

4.5979 Ratings

🗓️ 15 February 2019

⏱️ 14 minutes

🧾️ Download transcript

Summary

What should the U.S. do to adjust to China's rise? Tariffs and shattering the global trading system aren't the answer, according to Scott Lincicome.

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Transcript

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0:00.0

This is the Kato Daily Podcast for Friday, February 15th, 2019.

0:07.0

I'm Kila Brown.

0:08.2

Many critics of free trade mark the moment the US gave China permanent normal trade relations status as the moment

0:14.8

when China's relative rise truly began.

0:18.0

Scott Linscombe is a trade attorney, an adjunct scholar at the Cato Institute.

0:21.5

We discussed China's rise and how the U.S. has failed to adjust.

0:27.0

If you watch the anger surrounding the fact that China seems to be getting the better of the United States, or at least that's how

0:35.8

it's presented to the public, given the fact that even our own trade people, yourself included,

0:41.2

would say, yeah, it's true. There are substantial problems

0:46.1

with the way that the US and China engage on the trade front. So to the extent that that is true and the broader China's

0:56.9

getting the better of us is at very least way overstated, You know, draw that line.

1:04.0

Yeah, so there is a huge difference between rightfully, I think, criticizing Chinese trade

1:12.4

and economic behavior.

1:14.4

And I think that there's a lot of academic support for the idea that Chinese imports in particularly

1:21.1

after between about 2000 to 2010 caused a pretty significant

1:25.0

disruption for certain manufacturing industries and communities in the

1:29.2

United States what they call the China Shock. That's all I think something that I or other you know

1:34.0

trade advocates would completely acknowledge. The difference though is first

1:41.6

drawing conclusions with respect to whether that means that we are

1:46.1

winning or losing at trade. Really if you look at again those same analyses I

1:52.0

just mentioned they actually still show that the

1:54.3

United States as a whole benefits from Chinese imports and from global

...

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