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I’ve heard the Biden strategy on China described as a ‘grown-up Trump policy’. The sanctions were criticized by Democrats at the time but none of them have been rolled back, in fact, they’ve been hardened and strengthened, though in a less erratic way.
Public opinion has changed too.
The WSJ writes today about Treasury Secretary Janet Yellen’s upcoming visit to China. It also highlights how what was once an impenetrable economic ‘truth’ has been un-done. Funny how that goes.
“People like me grew up with the view: If people send you cheap goods, you should send a thank-you note. That’s what standard economics basically says,” she said. “I would never ever again say, ‘Send a thank-you note.’ ”
Yellen spent her entire academic career arguing for open trade but once she got an actual tasted of power, she’s done the opposite. China will plead to the old Yellen in meetings next week but hopes have never been lower for change.
In all likelihood, Yellen will be heading to Beijing with a warning that tariffs are likely to get worse.