Sinica Podcast NEW! China Talking Points Ep. 1: Trade Truce, J-10C Dogfight, and What Comes Next
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May 15, 2025 In this engaging discussion, Lizzi Lee, a Fellow on Chinese Economy at the Asia Society Policy Institute, dives into the recent U.S.-China trade negotiations, highlighting how unexpected tariff reductions could reshape the economic landscape. The conversation shifts to the noteworthy J-10C dogfight between India and Pakistan, exploring the implications of China's military technology. They also touch on the complex dynamics of global trade and the evolving U.S.-China relations, adding depth with insights on geopolitical tensions and the intersection of military innovation and diplomacy.
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Tariffs' Limited Role in Reshoring
- Tariffs need to be high and sustained to effectively reshore manufacturing to the U.S.
- Lower tariffs mostly raise costs, which are then absorbed by suppliers, importers, and consumers.
New Normal in U.S.-China Relations
- The U.S.-China trade relationship has entered a new normal with deep distrust.
- The conflict is likely to get more contentious, not less, regardless of leadership changes.
Clear Investment Lists as Step
- Publish clear investment white or negative lists focusing on low national security priority areas.
- Use lists to reduce trade tensions and foster bilateral business cooperation.
