Chimerica--great while it lasted(?)

SPECIAL REPORT "SURVIVING THE SLUMP": "The fragile web of foreign trade: The recession makes globalization more necessary, but more precarious," by Robert Guest, The Economist, 30 May 2009.

This is a rare Economist bit where the content does not address--much less deliver--the title.

Piece starts out by noting how temporal the concept of "Chimerica" may prove to be (from economists Niall Ferguson and Moritz Schularick), but then goes on to give a lot of reasons to believe in its staying power (basically my bit about "imagine a world in which China doesn't demand US T-bills and a world in which Americans don't demand Chinese goods"--emphasizing the power of demand v. supply), to include the notion that Chinese and American companies are becoming blended in many instances (e.g., a Wal-Mart that rents Chinese labor becomes a larger thing that is sort of Chinese and sort of American--I expect a lot more of this in the future, to include a lot of Chinese investment in American companies).

Instead of noting the end of corporate America's love affair with China (cheap labor creating elaborate supply chains), Guest correctly argues that most corps go to China today for the consumers (that demand again) instead of suppliers.

Bit ends with a patched-up para that argues America's reliance on globalization generally, but--again--the title of the piece simply isn't delivered.

Instead, the sum total of the article is "Chimerica--love it or leave it."

Comments

[William R. Cumming]

I guess the US does not do treaties anymore? How about a major treaty between China and US, including portions like that dealing with Great Powers Navies in the 20's? Of course it did spur innovation--carriers and subs, but hey to some degree it actually worked.

Okay Tom should US work hard on bilateral arrangements or what in a Globalizing World?

As you know I am for a totatlly free economic zone north of Panama Canal! Freedom to trade and migrate, whatever the consequences in the short term all will benefit in near long run. By the way the Canadian Border was completely open in all ways before WWI and then Canada entered the Great War and closed it looking for draft dodgers fleeing to US! Somewhat ironic given those leaving US for Canada during Viet Nam era.