On a possible China deal

Tyler Cowen, Free Press columnist and Holbert L. Harris Chair of Economics at George Mason University:

What do I want from a U.S. trade deal with China? Most of all, stability and predictability. America has a great deal it needs to do to “deal with China.” That might include boosting our own supplies of rare-earth elements, maintaining our lead in generative AI, and making sure that enough high-quality chips come from somewhere other than Taiwan.

Vigorous action is required on all these fronts. While we are at the wish-making stage, how about better fiscal policies for long-term sustainability, improved science funding, a more rapid and effective military procurement system, and an education system with fewer holes?

But here is the thing—none of those will be accomplished through a trade deal with China. Success or failure on those fronts will depend solely on ourselves. The purpose of a trade deal, at this point, should simply be to put U.S.-China relations back on a normal footing. We are not going to stop significant supplies of dangerous drugs from entering the United States, no matter what China does or does not agree to. We are not going to end China’s trade surplus with us, nor should we fear that trade surplus. And we are not going to end the ability of the Chinese government to have some influence over the real value of its currency, just as we have that same ability.

We could and should turn the drama down a notch. Whether that is what you will get from this episode in the reality TV season, however, remains to be seen.

Here are numerous other contributions, including from Dan Wang and Niall Ferguson.