Imagined in America

China and the US are enmeshed in an unsustainable trade relationship with no quick fixes. Often on the losing side, the US considers protectionist measures, such as a bill just approved by the US Senate allowing targeted tariffs if China balks at revaluing its currency. “China is spending tons of money manipulating its currency downward and, in the process, creating domestic inflation and a real estate bubble, which is weakening its competiveness” as “American companies [are] feeling the need to transfer advanced technology to China under pressure from Beijing officials,” explains Thomas Friedman in his New York Times column. He offers reminders that technology increasingly replaces human labor in providing products and services, while globalization ensures that companies are no longer trapped by geographic location. He urges the US to pursue innovation, while attracting more tourism and infrastructure investment from China. More rather than fewer connections could rebalance trade. – YaleGlobal