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A Second China Shock, With Brad Setser

The President’s Inbox

NOTE

Challenges in Coordinating US and European Policy on Chinese Exports

The United States and Europe may share concerns about the threat posed by Chinese exports, but they are likely to choose different policy solutions, leading to incompatible approaches. This divergence can trigger a cycle of blame and escalation, hindering effective coordination. Despite the belief that diplomacy is key, the challenge lies in balancing the specific vocal domestic interests that demand protection, making it hard to align policy strategies.

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