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Looking for other ways to read this? No thanks. Page i Share Cite. Suggested Citation: "Front Matter. Page ii Share Cite. Page iii Share Cite. Erich Bloch, Chairman Council on Competitiveness. Fred Bergsten Institute for International Economics. Lewis M.

The $89,000 Verdict Tearing Japan and South Korea Apart

Branscomb Harvard University. Lawrence W. Clarkson The Boeing Co. Destler University of Maryland. Mildred S. Dresselhaus Massachusetts Institute of Technology. Daniel J. Fink D. Fink Associates, Inc. Ellen L.

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Frost Institute for International Economics. Lester C. Krogh 3M Co. Yoshio Nishi Hewlett-Packard Co. Daniel I.

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Okimoto Stanford University. John D. Richard J.

Robert A. Scalapino University of California, Berkeley. Hubert J. Schoemaker Centocor, Inc. Ora E. Smith Illinois Superconductor Corp.

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Albert D. Wheelon Hughes Aircraft Co. Gerald P. James B. Page iv Share Cite. Page v Share Cite. Page vi Share Cite. Page vii Share Cite. Page viii Share Cite.


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Login or Register to save! Contents Front Matter i—viii Overview 1—18 I. Assessments of U. Contributing Authors — B. The whole world is ripping us off. There's nobody that's not ripping us off. Third, fearful of the damage its economy could suffer as a result of U. Tokyo is working more proactively with Beijing to conclude negotiations over the Regional Comprehensive Economic Partnership, a country arrangement that excludes the United States and would incorporate some 30 percent of GWP.

TECHNOLOGY AND THE NATION'S FUTURE

As that veiled threat suggests, Tokyo's desire to strengthen economic ties with Beijing is tempered by continued concerns about the latter's vision for Asian-Pacific security. This has become a significant concern for our country's defense. Fourth, Japan must contend with the prospect that economic competition between the United States and China could spill over into the security domain. I argued in a piece for Foreign Affairs ' website last month that because trade interdependence is one of the few phenomena that have compelled the two countries to exercise mutual restraint, the weakening of that dynamic could lead Beijing to challenge U.

One would expect it to do so most forcefully in its backyard, the Asia-Pacific, which is already coping with a significant security challenge in the continued progression of North Korea's nuclear and ballistic missile programs. Security tensions might even extend beyond the region; Beijing could, for example, move to intensify its alignment with Moscow, not only to push back more strongly against U.

If, as seems plausible, we are in the early stages of a long unwinding between the U. Apple CEO Tim Cook has gone so far as to say that these pressures have moved Chinese manufacturing outside the low-wage target that multinationals such as Apple seek.

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Whereas the United States and Japan can service their debts at little cost, at least for now, debt service in China comes out to 20 percent of GDP. Read: The Huawei drama is a gift to U. Huawei, with its stratospheric rise, was the poster child for this approach. Yes, part of its competitive advantage still stemmed from government largesse, but the overall performance of the company more than made it a net benefit for the country.

If the United States kicks off a trend of barring high-tech Chinese companies from lucrative Western markets, though, the Huawei model will be severely damaged. China would still press on with its push into high-tech sectors out of a desire to limit its own vulnerability to the type of supply-chain disruptions it is now facing, but the cost to the state would be far higher. Beneath all of the fawning media attention, the obstacles facing the Chinese economy are formidable.

And unlike the government in Tokyo, the Chinese Communist Party cannot countenance a deep and lasting recession that could prove fatal to its legitimacy. With the exception of the dot-com decade from to , the Unites States has seen lackluster productivity growth since the s, which has contributed to wage stagnation and all of its associated ills. The economic wonders of 5G remain highly speculative, but unlike previous generations of wireless technology, there is reason to believe that 5G will have major cross-industry effects.

Even if the 5G boosters are proved wrong, and its contributions to the economy end up being marginal, the upside is too large for the United States not to get in the race.