Trade Archive

Six months after the emergence of the novel coronavirus in Wuhan, China, and four months after it became a global outbreak, its political and economic fallout continue to take shape. As government policies adapt and evolve in real time to the changing features of the pandemic, so too do the geopolitical implications. So far, three scenarios have been advanced with regard to COVID-19’s potential impact on the international order. They can be broadly characterized as a change at the top, in which a triumphant and capable China replaces the bungling U.S. as the world’s dominant power; a descent into multipolar […]

Editor’s Note: Guest columnist Edward Alden is filling in for Kimberly Ann Elliott this week. During the Cold War, the United States created and led two quite different international trading systems. The first, and by far the better known, was the open, multilateral trading system. Its aim was to expand free trade and market principles around the world, and it culminated after the Cold War in the creation of the World Trade Organization in 1995. What began with just 23 nations in the aftermath of World War II, with the General Agreement on Tariffs and Trade, today includes 164 countries […]

Saudi Arabia announced harsh new austerity measures last week, including the suspension of a cost of living allowance for public workers and the tripling of its value added tax, from 5 percent to 15 percent. While the new policies are intended to plug a gaping hole in state finances amid the coronavirus pandemic and after a historic collapse in oil prices, they are risky for an absolute monarchy that has worked to guarantee affluent lifestyles for its citizens in exchange for their obedience. The government’s response appears to place a disproportionately heavy burden on everyday Saudis rather than the political […]

From the moment Chinese leaders belatedly recognized that a deadly new pathogen was spreading rapidly in the city of Wuhan and beyond, it became apparent that the coronavirus would play a defining role in shaping the image and power of China and its regime for years to come. Beijing has been working overtime ever since not just to contain the virus at home, but to shape the narrative of the pandemic there and abroad, seeking to portray China and its rulers as wise, efficient, powerful and generous. China’s ultimate goal is to emerge from this crisis as a more powerful […]

On the heels of Sen. Josh Hawley’s call in an op-ed to abolish the World Trade Organization, U.S. Trade Representative Robert Lighthizer also took to the opinion pages of The New York Times to declare the end of “the era of offshoring.” President Donald Trump’s aggressively unilateral trade policies, naturally, got most of the credit. As with Hawley’s fuzzy plan for a club of “free nations” aligned against China, it’s not quite clear whether Lighthizer thinks protectionism should still be part of the plan to “Bring the jobs back to America.” But with the United States potentially on the brink […]

HO CHI MINH CITY, Vietnam—As countries around the world debate how quickly they should reopen their economies amid the coronavirus pandemic, Vietnam is largely ahead of the curve. A national social distancing campaign that shut down non-essential businesses ended on April 22, and life has returned to a striking normalcy. Restaurants, bars, cinemas, barbers and other shops have reopened, though karaoke parlors and nightclubs are still closed. Sporting events and festivals are now allowed to resume as well, with the country’s top soccer league scheduled to hit the pitch next month. Domestic tourism is slowly picking up, as authorities ease […]

In an op-ed last week, Sen. Josh Hawley, a Republican from Missouri, called for the abolition of the World Trade Organization and the restoration of “America’s economic sovereignty.” A few days later, the Department of Labor reported that the unemployment rate had surged to almost 15 percent since the coronavirus pandemic hit—the highest level since the Great Depression. The timing of Hawley’s article could not help but bring to mind the Tariff Act of 1930, also known as the Hawley-Smoot tariff after its sponsors Rep. Willis Hawley of Oregon (no relation to the senator) and Sen. Reed Smoot of Utah. […]

Editor’s Note: Guest columnist Steven Metz is filling in for Candace Rondeaux this week. When the Soviet Union collapsed in the early 1990s, the United States could have decided that its great fight against totalitarianism was finally over. America could have downsized its involvement in all but the most vital parts of the world, lessened its dependence on imported energy supplies, demilitarized its global strategy and abandoned the quest for primacy. But it did not. By then, Americans had become addicted to primacy, convinced that a militarized form of global leadership was both vital and sustainable. All of this no […]

Editor’s Note: Every Wednesday, WPR Newsletter and Engagement Editor Benjamin Wilhelm curates the week’s top news and expert analysis on China. In the latest sign of an escalating campaign in Washington to pin the blame for the coronavirus pandemic on China, President Donald Trump’s administration is weighing aggressive economic action against Beijing. Facing criticism for his disastrous response to COVID-19 in the U.S., Trump has elevated China to the forefront of his reelection bid, claiming that it bears all responsibility for the coronavirus outbreak and the economic devastation it has wrought. In a Fox News town hall on Sunday, Trump […]

The COVID-19 pandemic is affecting the entire world—but in vastly different ways. In particular, efforts to “flatten the curve” could create huge but unquantified costs for the most vulnerable. As a result of measures to contain the coronavirus’s spread, the specter of “biblical” hunger now hangs over much of the globe. At the same time, social distancing strategies remain an unattainable mirage for the hundreds of millions of people living in crowded quarters in the developing world. For fragile and conflict-affected countries, the pandemic represents a grim, dual challenge that risks threatening a precious good: peace. Many of these countries […]

In this week’s editors’ discussion on Trend Lines, WPR’s Judah Grunstein, Freddy Deknatel and Prachi Vidwans talk about the impact of the coronavirus pandemic on the strategic competition between the U.S. and China, and whether the current tensions between Washington and Beijing over the origins of the outbreak will have a lasting impact on bilateral ties. Listen: Download: MP3 Subscribe: Apple Podcasts | RSS | Spotify Relevant Articles on WPR:COVID-19 Could Reignite Trump’s Trade War With China Why the Coronavirus Pandemic Won’t Lead to a New World OrderBeware of China’s Coronavirus PropagandaIn Israel, Netanyahu Outplays His Political Opponents, Again‘In Many […]