Beyond Obama's China Trip: Facing The Economic Dragon
On the heels of President Obama's trip to China, Carolyn Bartholomew, the chair of the U.S.-China Economic and Security Review Commission, and Clyde Prestowitz, the president of the Economic Strategy Institute, discuss how the United States should respond to the Chinese economic juggernaut.
Bartholomew and Prestowitz agree that the United States needs to respond to the Chinese government's efforts to boost their economy with our own "innovation strategy" that supports the strengthening of industries key to our energy and technology future. That strategy would include national incentives to businesses that would supplement, if not replace, the piecemeal efforts by states to woo foreign companies or keep domestic companies from leaving. They suggest that, contrary to the insistence of some doctrinaire free-marketeers, there are some steps that China is taking to build up its economy that we should emulate, and our bilateral negotiations should reflect that truth.
They also explain the importance of Chinese currency policy in constraining our own ability to grow our economy.