Derek Scissors

1 week ago | aei.org | Derek Scissors |Julia Cataneo

Apologies to anyone who read my recent tariff posts. I did say about the first announcement that “yesterday’s rollout was not credible,” but should have stopped there. Rather than pretend the latest Trump administration spin on its latest walk-back is worth the time, it may be useful to assess the side that loves stability. China cares less about tariffs than it may seem. The key reason: Beijing’s prime goal isn’t prosperity, but leverage. Many experts on trade and China have recently emerged.

2 weeks ago | aei.org | Derek Scissors |Julia Cataneo

Yesterday’s Trump temporary (at least) tariff reset seems to benefit almost everyone. American trade partners are in better shape and so is the US, because last week’s tariffs made no sense, to the point of even threatening the dollar. It might seem that China is the biggest loser, now facing 125 percent tariffs instead of 10 percent for others. In fact, the reset is potentially a win for China also, unless American trade enforcement dramatically tightens.

2 weeks ago | aei.org | James Pethokoukis |Derek Scissors

Today on Political Economy, I talk with Derek Scissors about what the Trump Administration’s newly-declared tariffs mean for US-China relations and what to make of today’s economic uncertainty. Derek is a senior fellow here at AEI, where he focuses on US-Asia economic relations. He is the chief economist of the China Beige Book and previously served as a commissioner on the US-China Economic and Security Review Commission. He is also the author of the China Global Investment Tracker.

1 month ago | aei.org | Derek Scissors |Julia Cataneo

The CHIPS Act has worked to revitalize the US semiconductor industry and protect American consumers from crisis shortages. To a point. It also has flaws, of course, some avoidable but some inherent to industrial policy. The original legislation can be supplemented, not just with money, to bolster genuinely national interests. And CHIPS results, positive and negative, are a guide to whether and how similar programs should be designed.

2 months ago | aei.org | Derek Scissors |Julia Cataneo

Yesterday I listed seven ways President Trump has been a China dove since he first took office in 2017. These next eight are worse. 8. Elon. Could Trump have been easy on China first term but be more hawkish this time? The rise of Elon Musk says exactly the opposite. The single biggest chunk of Musk’s wealth is his Tesla stake and the value of his Tesla stake depends on Beijing’s goodwill. No wonder Trump’s new main man likes the People’s Republic so much. 7. “Real” enemies.