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China’s Industrial Policies and Trade Rules – If You Can’t Beat ‘Em, Join ‘Em?

Discussions are now underway as to whether EU antitrust policies need to be relaxed in order to allow greater latitude to meet the challenge posed by Chinese mega-firms.

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wakanda

Black Panther: Pass the Popcorn and Ignore the Trade Policy

Largely set in the mythical African kingdom of Wakanda, Black Panther portrays this small land-locked country as home to vast riches, the planet's most advanced technology, and—as a result of largely avoiding contact with the outside world—an autarkic trade policy. While perhaps sufficient for a superhero movie's flexible bounds of believability, audience members should not mistake this comic book-inspired universe for economic reality.

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Is Public Opinion Turning Against Tariffs?

New public opinion research shows that the majority of Americans worry the tariffs will do more harm than good for the economy.

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A High Wire Act: The Trump Administration and Section 232

The current administration's use of Section 232 to impose trade-restrictive measures on imports of steel and aluminum has become the source of increasing domestic discontent among steel-using industries, farmers who are the target of retaliatory tariffs, and Members of Congress who are reconsidering having delegated powers over trade to the President. It has also put WTO dispute settlement to an unwelcome test.

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Cash Feeding China

Feeding China’s State-Owned Enterprises With Government Cash

China went from a net importer of critical intermediary goods such as glass, paper, steel, and auto parts, to becoming the leading producer and dominant global exporter of these products. How could this seismic shift occur in industries where China does not maintain a particular advantage in labor, technology, or natural resources? The answer in large part is subsidization of Chinese production in the form of state-directed capital flows.

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2019 Super Bowl Trade Showdown Infographic

It’s on. Super Bowl Sunday approaches amidst a swirl of controversies over bad calls and “unfair competition” on the football field. We take no opinion on that here at TradeVistas. Instead, we bring you a trade showdown between the exporting profile of the metropolitan area where each team is located. Share the graphic and enjoy your guacamole that was probably made from Mexican avocados.

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US-China Trade

Will US-China Trade Talks Solve the Real Problems?

The announcement that trade talks in Beijing between the United States and China had been extended by a day sparked an uptick in stocks and renewed optimism that a resolution to the trade war might be in the offing. A minimal face-saving agreement should be possible before the March deadline, but this would only delay the ultimate day of reckoning. Friction points between China’s state-directed economic system and the United States’ ostensibly free market, free trade system will reassert themselves sooner rather than later.

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Chicken feet

U.S.-China Cry “Fowl” Over Chicken Feet Trade

Chicken trade has been a sore spot in bilateral agricultural trade since 2004 when the United States and China banned each other’s poultry products after an outbreak of avian flu. If these long-simmering disputes are resolved in the context of ongoing U.S.-China trade talks, millions of Chinese could again see American chicken feet grace the dim sum buffet at Chinese New Year festivities.

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Asia Assembly Line

Is the Trade War Causing Manufacturers to Leave China? Yes and No.

Manufacturers of labor-intensive products like apparel have already been looking elsewhere in Asia as labor costs continue to rise in China. China has not substantially increased market access for foreign investors in many sectors, causing foreign investment to slow or flatline in recent years. With lingering doubts about the worsening investment climate in China, the trade war is hastening decision-making that had already been underway.

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Is WTO Reform Necessary?

When the General Agreement on Tariffs and Trade (GATT) was first agreed by 23 original contracting parties in 1947, there were no guarantees that the rules would endure. Today, WTO membership stands at 164 countries -- representing collectively, more than 98 percent of global trade. But for an institution to endure, it must remain relevant.

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