In The News

James Politi and Lucy Hornby February 27, 2019
Agreement on a China-US trade deal may be near. Both nations want a deal, though few details have been released. US goods and service trade with China totaled more than $700 billion in 2017. “Yet even if a deal is more likely than not, there is reason to doubt whether it will be as comprehensive as Mr Trump is likely to depict — or even if it can deliver a lasting commercial peace between...
Susan Lund, James Manyika, Jonathan Woetzel, Jacques Bughin, Mekala Krishnan, Jeongmin Seong, and Mac Muir February 26, 2019
Trade increases in absolute terms though overall percentages are slowing, explains analysis from McKinsey Insights. Services like research, finance, engineering and more are growing at a faster pace than trade in goods,” creating value far beyond what national accounts measure,” the article reports, adding “services already constitute more value in global trade than goods. In addition, all global...
Minxin Pei February 18, 2019
If the US and China fail to negotiate a comprehensive trade agreement, bilateral trade, the economic relationship will erode as tariffs of up to 25 percent are applied on $200 billion of Chinese exports to the US, thus encouraging relocation of business activity out of China. Even if the two nations resolve differences over China’s state-owned enterprises and subsidies, the relationship could...
Yan Xuetong February 16, 2019
US Vice President Mike Pence’s 2018 speech at the Hudson Institute, stopping short at inaugurating a new Cold War, bluntly enumerated China’s encroachment on US interests. His words illustrated the Trump administration’s perception of the rising power in the East, one determined to replace the United States in the global order. Yan Xuetong writes in Foreign Affairs that China does not seek an...
Valbona Zeneli and Michael R. Czinkota February 15, 2019
With more than 160 members, the World Trade Organization describes itself as the only global organization dealing with the rules of trade among nations. “The outsourcing revolution has affected the developing world in a major way: global manufacturing and new services have dramatically changed supply chains; corporate espionage and intellectual property infringements supported many corporate...
February 14, 2019
Despite the conviction of Joaquin “El Chapo” Guzman, the US demand for illegal drugs has not subsided. The Sinaloa drug cartel is under new leadership, less flamboyant and violent, and still maintains an international network bringing in product from places near and far, whether Colombia or Malaysia. “Those heaping bags of fentanyl – sourced in China – and plastic tubs of crystal meth, heroin...
Tomoo Kikuchi and Masaya Sakuragawa February 8, 2019
Asia’s contributions continue to gain weight in the global economy. China and Japan are the world’s second and third largest economies, respectively. India, South Korea and ASEAN members also provide substantial contributions. All benefit from free trade, explain Tomoo Kikuchi and Masaya Sakuragawa, but trade and growth have slowed. “China and Japan should pursue greater cooperation on a number...