CHINAMacroReporter

President Biden Lays Out His ‘American Jobs’ Plan

‘It has become a cliché in U.S. policy circles that the best China policy is to invest in core U.S. capabilities: education, infrastructure, and research and development,’ writes Evan Medeiros of Georgetown University in ‘How to Craft a Durable China Strategy,’ in Foreign Affairs.
by

|

Foreign Affairs

April 2, 2021
President Biden Lays Out His ‘American Jobs’ Plan

‘It has become a cliché in U.S. policy circles that the best China policy is to invest in core U.S. capabilities: education, infrastructure, and research and development,’ writes Evan Medeiros of Georgetown University in ‘How to Craft a Durable China Strategy,’ in Foreign Affairs. (The entire analysis is excellent and well worth reading.)

  • ‘Congress, however, largely lacks the political will and unity to do so.’
  • ‘As a result, many, including Biden, are calling for a new moon landing–like program to galvanize support for such investments.’

‘Competing with Beijing could be that mission, but generating widespread political support for that goal may require framing China as a global threat akin to the Soviet Union.’

  • ‘In other words, the very arguments needed to generate such investments may also require turning China into an implacable foe.’
  • ‘The United States would therefore get the investment needed to compete but at the cost of generating enduring confrontation.’

And you might think President Biden did just that when he introduced his $2.25 trillion ‘America Jobs Plan’ when you read headlines like this from Axios:

  • ‘Biden builds infrastructure pitch around China challenge.’

More accurate however is Matthew Choi’s assessment in Politico, ‘Biden sells his infrastructure package,’ where he writes:

  • ‘Biden threw a bone to the China hawks, portraying infrastructure as a test of America’s ability to prove its mettle versus the communist state and show it can deliver on both infrastructure and combating climate change.'
  • ‘ “That's what competition between America and China and the rest of the world is all about. It's a basic question. Can democracy still deliver for their people?” he asked. “I believe we can.” ’

If however you read Mr. Biden’s statement (and the mind-blowing Fact Sheet outlining the Plan), you see that his overwhelming focus is on the benefits to the American middle class:

  • ‘In fact, it’s the largest American jobs investment since World War Two. It will create millions of jobs, good-paying jobs.’
  • With a tie-in to geopolitics: ‘It will grow the economy, make us more competitive around the world, promote our national security interests, and put us in a position to win the global competition with China in the upcoming years.’

Given the difficulties Mr. Biden faces in getting the Plan passed by Congress, he may have erred by not tying more closely to the China challenge.

  • After years of candidate and former President Trump’s drumbeat, the American people are aware the threat China poses.
  • A recent Pew Poll found: ‘Roughly nine-in-ten U.S. adults (89%) consider China a competitor or enemy, rather than a partner.’
  • Most Americans don’t know a lot about ‘Made in China 2025,’ but they do know more generally that China has been rapidly beefing up its capabilities to compete with the U.S.

Mr. Biden may have been trying to avoid, as Dr. Meideiros suggests, branding China ‘an implacable foe,’ thereby giving himself some policy breathing room, especially for potential areas of cooperation, like climate change.

  • But by not so doing, even a bit, he also missed an opportunity to rally Americans to support his plan for more than just the otherwise excellent reasons he lays out: The Plan ‘builds a fair economy that gives everybody a chance to succeed, and it’s going to create the strongest, most resilient, innovative economy in the world.’

The China challenge is clearly one of the main causes for Mr. Biden’s urgency in realizing the Plan.

  • By not explaining more directly both the challenge and how the Plan aims to meet it, Mr. Biden missed an opportunity – and maybe passage of the Plan itself.

More

CHINAMacroReporter

May 22, 2022
The Next U.S.-China Crisis: CEOs & Boards Are Not Ready
‘The bad news is that very few corporations engaged in China have contingency plans or long-term strategies to hedge against the downside risks of growing geopolitical competition.’
keep reading
May 14, 2022
China GDP: 'A very long period of Japan-style low growth.’
Here are some of the insights from ‘The Only Five Paths China’s Economy Can Follow’ by Peking University’s Michael Pettis. This excellent analysis of China’s economy is worth a careful reading.
keep reading
May 1, 2022
'Zero Covid' & the Shanghai lockdown
Joerg Wuttke is the president of the EU Chamber of Commerce in China - the 'official voice of European business in China.'
keep reading
March 9, 2017
So many twists and turns to the China Housing markets story
[CHINADebate Presentation] One of the highlights in our recent 'In Pursuit of Patterns' series of client notes, showed that the land sales growth had tended to lead the price growth and a significant increase in land sales would lead, with a lag, to the subsequent correction in prices.—Almost everyone on the outside seems to have missed the biggest bull market in China housing in 2016, culminating in policy tightening cycle kicking in at the end of the year. But what's next?
keep reading
February 27, 2017
Is The U.S. Ceding Global Leadership To China?
'China isn't positioned to replace the U.S. as a global leader anytime soon.'—Hard on President Trump's 'American First' inaugural address, Xi Jinping gave a rousing paean to globalism at the World Economic Forum. And, immediately the hot question became: 'Is the U.S. ceding global leadership to China?' Yes and no, says Bill Overholt of the Harvard Asia Center. Yes, the U.S. is ceding global leadership. No, China won’t replace the U.S. What will replace the U.S. is ‘G-Zero’, a world with no single global leader. Not China, not the U.S. So, can his critics lay this outcome at President Trump’s feet?
keep reading
February 15, 2017
C-to-C Internet Commerce- From Taobao Shops to Taobao Villages
One is some of the local government-owned SOEs are the sources for overcapacity. The reason is because the local government also wants to ensure there's some degree of employment locally, and perhaps some source of taxation. The Chinese government is now going to need to start the so-called supply-side economics to try to consolidate overcapacity in a number of sectors. It's going to impinge on the interests of many of these local SOEs as well as the local governments who own them.
keep reading
February 15, 2017
How SOEs & Local Governments Create Overcapacity
One is some of the local government-owned SOEs are the sources for overcapacity. The reason is because the local government also wants to ensure there's some degree of employment locally, and perhaps some source of taxation. The Chinese government is now going to need to start the so-called supply-side economics to try to consolidate overcapacity in a number of sectors. It's going to impinge on the interests of many of these local SOEs as well as the local governments who own them.
keep reading
February 15, 2017
Why SOE Reform is So Tough
'...SOEs need to reform, because on one hand, many of them have achieved a lot for China. On the other hand, they've actually created quite a lot of harm, in particular in the areas of overcapacity but also in the areas of corruption we've talked about.'
keep reading
February 2, 2017
AmCham China Chairmen's View From China in D.C. 2017
[AmCham China & CHINADebate U.S.—China Trade/Business Series 2017] Terrific insights from leaders on the ground in China. While in D.C. the Chairmen joined us in a panel discussion and individual interviews about U.S. business in China, U.S.-China relations, trade, and much more. We present their views in a 13 part series. Sheryl WuDunn, business executive, lecturer, best-selling author, and winner of the Pulitzer Prize moderated.
keep reading
February 1, 2017
'Chinese Politics In The Xi Jinping Era'
[Malcolm Riddell Interviewed Cheng Li] 'If you ask any taxi driver in Beijing, Shanghai, or Guangzhou, he or she will tell you – with accuracy – which leader belongs to which faction. : 'China is a one–party state, but that does not necessarily mean Chinese leadership is a monolithic group with leaders who have the same ideas, same background, same world views, same politics. No, they're divided.'
keep reading
December 7, 2016
First 100 Days: Do Not Provoke China
The First 100 Days interview series features Pacific Council experts addressing the top foreign policy issues facing the incoming Trump administration.: Warns of the potential for new conflicts if Donald Trump follows through with his campaign promises regarding China.
keep reading
October 18, 2016
How Alibaba, Xiaomi, & Tencent are Changing the Rules of Business
[An Interview of Ed Tse, the author of 'China's Disruptors: Alibaba, Xiaomi, & Tencent... how innovative 'Disruptor' companies are restructuring China's economy.' ] The real force in Chinese economy is increasingly private companies, not SOEs. / Leading private Chinese companies are innovative and ambitious
keep reading
July 14, 2016
How 'Brexit' Will Impact China's Economy
David Dollar gives you fresh insights to better incorporate Brexit's impact into your analyses of China and global economies & markets, including: 1. Why, after the Brexit vote, did the Shanghai Stock Market fall only 1%? 2. How will Brexit affect the value of the RMB and China's currency policy? 3. How will Brexit impact trade with the EU, China’s largest trading partner? 4. Why, in the larger geopolitical perspective, could China be the big winner from Brexit?
keep reading
July 2, 2016
China housing: boom, bust, or bubble-or...?
100s of Cities Bubble Up & Down As Policy Makers Press the Levers China hasn’t collapsed. And, the bubble hasn’t burst because there may not be just one big real estate bubble. Instead, there are 100s of sizable cities, each moving in its own cycle, each responding to how its local policymakers stimulate & tighten-stimulate & tighten, and each having performance divergent from that of other cities. Watch here to see how city-level markets bubble up and bubble down...
keep reading

Heading

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.