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SAGE Speaker Yukon Huang talks about US-China trade truce after the recent G20 meeting. He mentions that “the US-China impasse comes from much deeper differences in perceptions”.
Earlier this month, President Donald Trump tweeted that he had a “long and very good conversation” with President Xi Jinping over the phone. However Trump’s positive rhetoric contrasts sharply with the current reality of the U.S.-China relationship. In the midst of increasingly competitive and near-confrontational relations, it is important to remain clear-eyed about the difficulties that the U.S. and China face going forward.
How To Avoid World War III in Asia - 6th Jul
World War II still hasn’t ended, yet World War III already looms. The recent discovery of large oil and gas reserves under the Senkaku/Diaoyu Islands islands has heated up the situation dramatically, with military budgets surging, and warships, coast guards and fighter jets scrambling to assert control over the commons. Meanwhile, tensions on the Korean Peninsula have drastically escalated into the world’s most dangerous flashpoint over the past seven decades precisely because the Korean War itself was never formally ended in 1953. A multipolar world can be an unstable landscape of security dilemmas and proxy competitions à la Europe before World War I, or it can be a stable balance of power in which sufficient distance among poles and respect for their spheres of influence generates a dynamic equilibrium. If we want this kind of lasting global stability, we must permit technocrats to make the peace first.
The concern about Chinese economic policy and practices is serious and real but the question is how you deal with it. Unilateral trade enforcement mechanisms are not going to do it. You need systemic tools that shape the economic environment around China in order to reshape their incentives.
The challenge we face today is different from what we faced yesterday. In the New Era, no country can solve these challenges alone, so new coordination and cooperation are needed. We should help each other.
The private wealth products are now thoroughly embedded in the heart of China’s financial system and play a key role in rolling over non-performing debt. Investors believe they will be paid regardless of whether the investment performs or not. If investors can lose their money, they will stop funding these sorts of assets. Is China willing to accept what that means?
House Republicans have finally introduced their long-awaited tax bill, kicking the legislative process into high gear. Several of the bill’s provisions – cutting the corporate tax rate from 35% to 20%, allowing immediate write-offs of capital investments – could boost after-tax corporate earnings in future years. But the complex package faced mixed reviews, even from generally supportive business groups.
Those who favor different rates for income tax and capital gains tend to argue that people wouldn’t invest if investment income were taxed at normal rates, and that it would stop job creation. There is absolutely no evidence for this.
Review of Yukon Huang’s new book: “Cracking the China Conundrum: Why Conventional Economic Wisdom Is Wrong”. - 1st Nov
Yukon Huang’s new book offers a breath of fresh air in an environment of fake news and media-driven distortions. The author offers fact-based analysis and goes to bat against all extremes, both Chinese optimists and economic pessimists, in an attempt to illustrate the true picture of China’s economic and political situation.
The battle to export bullet trains is clearly reflective of the broader rivalry between China and Japan for influence in Asia. Consequently, the India deal is not only a business coup for Japan but also a geostrategic one.