Economics & Global Affairs

632 Items

Blog Post - Views on the Economy and the World

RMB Reaches 7.0; US Names China a Manipulator

| Aug. 12, 2019

The US-China trade war heated up in the first week of August.  On August 1, Donald Trump abruptly announced plans to impose a 10 % tariff on the remaining $300 billion of imports from China that he had not already hit with earlier tariffs.   The Chinese authorities then allowed their currency, the renminbi (RMB), to fall in value below the highly visible line of 7.0 RMB/$.  The US Administration promptly reacted on August 5 by naming China a “currency manipulator” — the first time any country had been given that designation in 25 years.   Pundits declared a currency war, while investors responded by immediately sending stock markets down.

Jeff Schwager, president of Sartori Cheese poses for in front of their plant

AP/Morry Gash

Analysis & Opinions - Project Syndicate

Power and Interdependence in the Trump Era

| July 03, 2019

President Donald Trump's manipulation of America's privileged international system will strengthen other countries' incentives to extricate themselves from US networks of interdependence in the long run. In the meantime, there will be costly damage to the international institutions that limit conflict and create global public goods.

President Donald Trump, left, poses for a photo with Chinese President Xi Jinping.

AP Photo/Susan Walsh

Analysis & Opinions - Belfer Center for Science and International Affairs, Harvard Kennedy School

A Financial Statecraft Strategy for the United States to Address the Rise of China

| July 01, 2019

Washington should adjust its coercive economic strategy to reflect a broader use of tools beyond sanctions. Given the degree of political interference in China’s banking system via formal state ownership and the indirect influence of opaque party committees, penalties imposed against the country’s banks are unlikely to produce a meaningful change in behavior.

Chinese President Xi Jinping and U.S. President Donald Trump

AP Photo/Pablo Martinez Monsivais

Analysis & Opinions - Nikkei Asian Review

Where Will It End? The US-China Trade War and the Threat to the Global Economy

| June 19, 2019

Making sense of the U.S.-China trade war is difficult in itself. Making sense of how it may provoke a wider economic "decoupling," and impact the long-term strategic relationship between Beijing and Washington, is more difficult again.

 

Workers dismantle the Belt and Road Forum logo next to the “Golden Bridge of Silk Road” structure outside the media center as leaders are attending the round table summit of the Belt and Road Forum chaired by Chinese President Xi Jinping in Beijing, Saturday, April 27, 2019

AP Photo/Andy Wong

Paper - Belfer Center for Science and International Affairs, Harvard Kennedy School

The Triangle in the Long Game

| June 19, 2019

The purpose of this paper is to analyze how China’s new power is reaching Europe, the challenges that it poses, and the European responses to this new reality. This process has to be examined in the context of the current strategic competition between China and the U.S. and its reflection on the transatlantic relationship.