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Chicken Feet and Chump Change
10/5/2009 12:00:00 AMHas a mini-trade war has broken out between the United States and China? On Sept. 12, the Obama administration imposed a 35 percent tariff on tires imported from China. In response, China said it would look into the prices of chicken feet sent from the United States to China. Last week, the New York Times reported that tariffs have been slapped on U.S. imports of Chinese solar panels. Free-traders have begun to worry that President Obama might be back-pedaling on his commitment to open markets. (Click here to follow Daniel Gross)
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The China Conundrum
9/19/2009 12:00:00 AMFor years, U.S. presidents have faced a China conundrum: how to deal with a country that has predatory trade practices without unleashing worldwide protectionism? President Obama's recent decision to slap high tariffs on Chinese tire imports for three years, starting at 35 percent and dropping to 25 percent in the final year, captures the dilemma. To do nothing about China's trade policies is to encourage more of the same. But to attack them too aggressively threatens U.S.-China cooperation on other issues (from North Korea to financial regulation) and risks a wider trade war.
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Unleashing the Chinese Consumer
9/5/2009 12:00:00 AMAs the global financial crisis ebbs, company and policy leaders around the world are scratching their heads and trying to understand what the post-downturn "new normal" state of the world economy will be. Which nations will become growth engines? Where will new business opportunities arise? How will the global trade and savings imbalances evolve?
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China’s Stock is Sky-High
9/5/2009 12:00:00 AMChinese stocks are still a long way off their October 2007 record highs, but if sentiment on the streets of Beijing or Chongqing is anything to go by, the one stock at a new all-time high is that of the Chinese government. The country's middle class now has incredible faith in its government's ability to pull off any plan it sets out to achieve.
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Will Recovery Go Global?
8/14/2009 12:00:00 AMBefore we get too giddy about any U.S. economic "recovery," we should remember that the preceding collapse was global. No recovery can succeed unless it, too, is global. Will that happen? The world can no longer rely for growth on free-spending Americans, who are overburdened by debt and sobered by trillions of dollars of losses on homes and stocks. Without a substitute for American buying, any global revival will be feeble, because the U.S. needs export-led growth and other countries must somehow offset their lost sales to the United States.
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The Recession America Needed
8/4/2009 12:00:00 AM"It is probably well that we had the war when we did. We are better off now than we would have been without it, and have made more rapid progress than we otherwise should have made." –Ulysses S. Grant, writing about the Civil War in his "Personal Memoirs", 1885.
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