Demand Destruction | 04 | Smelling the Roses in Beijing
US-China diplomatic stabilization during the Middle East war
By Tim Sahay, Kate Mackenzie —
In our latest bonus episode we look at how US-China relations have evolved because of the Middle East war, after Trump met with Xi in the first US presidential visit to China in nine years.
Seemingly every country in the world wants Chinese foreign direct investment (FDI); now the US administration is seeking it, too.
Tim talks about why much of the world is experiencing not so much a “China Shock”, but a “China Squeeze”.
Kate looks at the implications for energy and international development.
Things we talked about:
- The Rhodium report on Chinese EVs in Europe.
- Jake Werner's paper A New Opening for US-China relations (Quincy Institute)
- Jessica Chen-Weiss in the FT this week: A Cold Peace between the US and China is good enough; and on CNN discussing where relations between the two countries are headed.
Jessica and Jake both appeared in Manufacturing Chimerica - Ep 4 of our first season.
A couple of our more relevant Polycrisis/Phenomenal World essays: