[Peace-discuss] The Coming Trade Blow-up??

[David Green]

"When a poor country is *very* poor, with a per capita income less than 25%
the rich country level, it stands in a “zone of mutual gain” vis-a-vis the
rich country: both countries benefit from the poor country’s progress. But
when the poor country’s income lies between 25% and 75% of the rich
country’s, the two countries stand in a “zone of conflict,” in which the
progress of the poor country reduces the rich country’s income. Then, once
the formerly poor country’s relative income exceeds 75%, the two nations
re-enter a “zone of mutual gain,” in which the progress of one benefits the
other.

And where does that leave China today? According to the World Bank, in 2016
China’s purchasing-power-adjusted per capita income stood at exactly 26.7
percent of the US level.

It’s almost spooky.

That, perhaps, is why, in Foroohar’s words, “there is a growing group of
thoughtful people who believe that American national security interests
will require a forcible untangling of the investment and supply chain links
between the US and China.”

Which means we’ve definitely entered the zone of conflict."

https://www.jacobinmag.com/2018/07/trump-trade-war-china
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