What does it mean for China and US? This editorial poses the intriguing question of what comes next.
The globalization model of the past 30 years is cracking up. And there appears to be no new model to replace it.
The US still runs huge trade deficits with China but there is a growing awareness that they aren’t sustainable. If the trade balance were to balance, what would that look like in practical terms for the US?
I suppose if the notion of actual competition with China – rather than frustration and resignation – began to take hold in the US, there would be more economic incentive to even out the flows of goods and services. Those deficits blew out at a time when globalization’s loudest advocates insisted the US had no place in manufacturing. However, with China flexing its muscles with is neighbors, not to mentioning pirating as much Western IP that can be hacked, possibly the attitude in America will change. No doubt, it’s what’s on Obama’s mind when he talks about China.
China is building faster trains and newer airports. Meanwhile, when our own engineers graded our nation’s infrastructure, they gave us a “D.”