Washington’s ban may cause some near-term supply chain disruption for solar panels. But with Beijing’s carbon neutrality goal, solar and wind energy manufacturing and installation can only accelerate in China.
Despite the heated rhetoric, the competition between the US and China is not between two political and economic systems. The challenges each faces in economic development are similar, as are the levers each has at their disposal to improve the lives of their citizens.
While the dollar outlook has been cloudy in the recent years, it is fighting back, thanks to tougher interest rate tightening expected from the Fed and a brighter political climate under US President Joe Biden.
The recent agreement by 131 jurisdictions to reform international corporate taxation is not the end of the road. To bring about a more equitable outcome, developing countries must now push for a higher global minimum tax rate and refuse mandatory arbitration.
Despite their differences, both the US and China will rely on consumer-led recovery to forge stronger growth in the next few years. Keeping consumers upbeat is vital, and a return to austerity should be avoided at all costs.
When it comes to infrastructure, the world does not need competing schemes. It just needs more funding. Moreover, Joe Biden is facing a congressional battle over his domestic infrastructure plan and is unlikely to win support for infrastructure building overseas.
A new report that takes a holistic view of the China challenge acknowledges the Chinese dream as a driving force behind Beijing’s strategic decisions. Biden and his team should take note, and direct their attention to rebuilding America.
As Joe Biden visits the UK, he and Boris Johnson will discuss global challenges, including China and Russia, as well as bilateral issues like a trade deal, which would be a significant victory for Johnson’s ‘Global Britain’ agenda.
The deal for a global minimum corporate tax rate struck by the G7 sets a low threshold to assuage developing countries’ concerns while the global apportionment of profits will enable high-tax jurisdictions to recoup some of their lost revenue.