Who Holds The Cards In The Trade War: U.S. Or China?

The text presents a debate on China's economic power and its implications for the US. The central question is whether producers or consumers hold the upper hand in the economic relationship. The upcoming debate features Michael Pettis and Peter Alexander, experts on China's economy. Pettis will argue the bear case, highlighting China's shift from supply-side to demand-side constraints. He suggests China's reliance on investment or trade surpluses faces limitations, leading to an "Albert Hirschman trap" where growth models become obsolete. Pettis views Trump's tariffs as a tool to influence consumption and production. Alexander will present the bull case, emphasizing advancements in automation and AI, and continued foreign investment. He highlights the strength of Chinese consumers and the sustainability of the country’s economic growth. The debate also discusses the U.S.-China trade war and its broader impact. The article encourages readers to subscribe to the platform to watch the debate and form their own opinions.