America has changed the way it views the rest of the world. Rather than pushing for a more globalised economy with fewer trade barriers, the US is now seeking a more protected system of international trade. President Biden’s Inflation Reduction Act promises nearly $400bn to boost clean energy and reduce dependence on China for things like batteries for electric cars. The Chips Act, meanwhile, provides incentives worth $52bn to boost America’s semiconductor industry.
On this week’s podcast, hosts Mike Bird and Alice Fulwood examine what this new zero-sum era means for the global economy. Chad Bown from the Peterson Institute for International Economics tells them the age of globalisation isn’t returning any time soon. Henry Gao from Singapore Management University blames America’s attempt to “out-China China by becoming more like China”.