Reference News Network November 9 report: The US "Subscription Stack" website published an article titled "We Are Second!" on November 3. The author is Nobel Prize-winning economist Paul Krugman. The following is the translated text:

During President Trump's recent Asian trip, some foreign leaders flattered him and gave him private gifts, so he felt very good when he returned to the United States.

However, the whole world knows that flatterers will not tell Trump this truth: his confrontation with China ultimately demonstrated China's strength and America's weakness.

Trump may believe that the world economy is a zero-sum game, where one country's gain is another country's loss. But that is not the case. China's remarkable rise after implementing economic reforms did not make the United States poorer. A country with 1.4 billion people rapidly moving from extreme poverty to a middle-income status has made us richer, expanded the world market, and provided us with manufactured goods that would cost much more to produce in the United States.

In addition to its large economic scale, given that China is still a middle-income country, its economy is advanced in certain aspects than you might imagine. China dominates in the field of renewable energy, which is one of the most important technological fields of the 21st century. China is also engaged in fierce competition with the United States in the field of information technology.

Faced with competition from China, the Biden administration has taken action: first, through the Inflation Reduction Act to support renewable energy. The act provides subsidies for green energy, aiming to support the purchase of electric vehicles and key equipment such as batteries produced domestically in the United States.

Secondly, through the CHIPS and Science Act to support advanced technologies, mainly supporting semiconductor manufacturing to reduce U.S. reliance on foreign suppliers.

Currently, the Trump administration has abandoned all of this. The United States no longer competes for leadership in the field of renewable energy, because the current administration dislikes wind and solar energy. They not only cancel subsidies but also try to completely stifle renewable energy.

Trump strongly criticized the CHIPS and Science Act and the idea of using subsidies to promote domestic manufacturing. He prefers tariffs instead.

If the United States has launched a trade war against China, then China has won. Why?

A large part of the answer lies in the fact that China's influence over us is greater than our influence over them. We were or are an important export market for China, but China has a clear advantage in rare earths, which are essential for many advanced technologies.

The current U.S. administration clearly did not realize that China might retaliate when imposing punitive tariffs on China.

Moreso, despite Trump's tough rhetoric on tariffs regarding China, he did not clearly focus on the key geopolitical issue of China's growing strength. Instead, he was busy imposing tariffs on Brazil because he was dissatisfied with its internal affairs; he was busy imposing tariffs on Canada because a television commercial aired in Ontario annoyed him. Trump's tariff policy is less about "America First" and more about "self-interest."

In summary, the entire confrontation demonstrates China's strength and America's weakness. It can be said that the United States is no longer the leader of the world. Unless future presidents can miraculously restore our global standing, the future belongs to China. (Translated by Ge Xuele)

Original: https://www.toutiao.com/article/7570707190886220339/

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