Navigating China’s Rise: Develop a Sustained, High-Level Trade Strategy

Lael Brainard and
Lael Brainard National Economic Advisor - National Economic Council

Wing Thye Woo
Wing Thye Woo Former Brookings Expert

February 28, 2007

China’s growth in power has posed both challenges and opportunities in U.S.-China relations, and for the effect on the global economy. Economically, militarily and politically, China and the U.S. are playing on tumultuous turf. 

This paper presents five elements to a successful approach to trade with China:

  • make preparing America for the rise of China and shaping the surrounding environment in our favor a top, sustained priority
  • vigorously implement programs that equip Americans to compete in the global economy and provide social insurance in support of mobility and opportunity
  • vigorously pursue critical trade enforcement actions that have the greatest consequences for American competitiveness-with intellectual property theft and China’s comprehensive subsidization of its exports as central targets
  • push for more rapid adjustment of China’s currency as a critical component of a broader policy to induce appreciation in Asian currencies and to facilitate an orderly decline in global trade imbalances
  • undertake sustained economic diplomacy at the highest levels to shape multilateral and regional economic structures and agreements favorably

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