

EMERGENCY POD: Biden's Electric Curtain
24 snips May 15, 2024
Brad Setser, an expert on international finance from the Council on Foreign Relations, dives deep into Biden's new tariffs and their impact on U.S.-China relations. He discusses the complexities of U.S. trade policies and how they adapt to China's rise in electric vehicle manufacturing. Setser highlights the challenges of U.S. reliance on Chinese imports, particularly in the battery sector, and examines vulnerabilities in the supply chain for critical materials. The conversation cleverly mixes serious economic analysis with light-hearted musings about diplomacy and nostalgia.
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US Response to China's Manufacturing
- The US response to China's manufacturing rise has evolved through three phases.
- It began with viewing China as complementary, then as a competitor, and now as a rival requiring industrial policy.
Fair Competition vs. Reality
- Biden claims American businesses can outcompete anyone in fair competition.
- Jordan Schneider argues that "fair" isn't the issue; China is genuinely skilled, and US domestic decisions also play a role.
Competition's Double-Edged Sword
- Competition can strengthen industries but can also destroy them.
- Brad Setser believes open competition risked transferring the entire EV industry to China, not strengthening the US.