Everyone knows that China's economy has had explosive economic growth in recent decades, with tidal effects through the rest of the global economy. In fact, China's economy has come so far and so fast that some of the main shocks it has caused in recent decades may be about to move into reverse. At least, that is the provocative thesis of Charles Goodhart and Manoj Pradhan in "Demographics will reverse three multi-decade global trends," written as Bank of International Settlements Working Paper No 656 (August 2017). They write:
Global value chains have been on the rise. Roughly one-third of international trade is "traditional" trade, in which all of production happens in one country and all of consumption happens in another. About two-thirds is either a "simple" global value chain, in which "value added crosses national borders only once during the production process, with no indirect exports via third countries or re-exports or re-imports" or a "complex" global value chain, in which the value-added crosses national borders at least twice. The Global Value Chain Development Report 2017, which has the theme of "Measuring and Analyzing the Impact of GVCs on Economic Development," explores these issues and others. The report is published a stew of groups, with participants from the World Bank Group, the Institute of Developing Economies, the Organisation for Economic Co-operation and Development, the Research Center of Global Value Chains headquartered at the University of International Business and Economics, and the World Trade Organization. It consists of an "Executive Summary" by David Dollar followed by eight chapters written by various contributors.
US stocks have given back all of their 2018 gains. Several developed and emerging stock markets are already in bear-market territory. US/China trade tensions have eased, a ‘No’ deal Brexit is priced in. An opportunity to re-balance global portfolios is nigh.
A sizeable portion of the US discussions about economic policy toward China seem to me based on two conceptual mistakes. One mistake is that China's rapid economic growth fundamentally depends on trade with the US. The other mistake is that the bulk of US economic problems depend in some fundamental way on trade with China.
"The 2017 Tax Act, sometimes called the Tax Cuts & Jobs Act, has been heralded by some as historic reform and by others as Armageddon. This Collection analyzes the Act, exploring the process by which it was passed, the values that undergird its policies, and how specific provisions will affect the structure of the U.S. and global economy moving forward." Thus begins a five-paper "Forum: Reflections on the 2017 Tax Act" from the Yale Law Journal (dated October 25, 2018).
The total number of unauthorized immigrants in the US climbed very rapidly in the 1990s and early 2000, but peaked around 2007, and has declined since then. Jeffrey S. Passel and D’Vera Cohn report details in "U.S. Unauthorized Immigrant Total Dips to Lowest Level in a Decade," just published by the Pew Research Center (November 28, 2018).
Americans are moving less, although the reasons aren't clear. The US Census Bureau has just released an updated set of tables and graphs showing the trend.