A new paradigm for US-China relations?
The Bridge
Deep Dive
What is the goal of Mitch Presnick's new X space 'Saturday Tonight China'?
The goal is to facilitate an unbiased, adult conversation about China that avoids favoring one side or the other, focusing on geeky yet insightful discussions while addressing how people in both the US and China feel about the relationship.
Why does Mitch Presnick believe the US-China relationship is moving toward a sustainable place?
He believes the relationship is evolving like a pendulum to a new, sustainable position, driven by the need for reciprocity and a more balanced approach, despite current tensions.
What does Mitch Presnick think about Trump's approach to tariffs on China?
He views Trump's tariff approach as a tactic to pressure China and drive reshoring of American manufacturing, similar to how China used tariffs to attract foreign investment and technology transfer in the past.
Why does Mitch Presnick argue that tariffs are a terrible strategy?
Tariffs are seen as short-term tactics rather than long-term strategies. They are ineffective at hurting others and often fail to address underlying economic issues, instead creating conditions for reshoring and investment.
What is the significance of the US dollar as the reserve currency in the US-China relationship?
The US dollar's status as the global reserve currency is a critical leverage point for the US in its relationship with China. It provides economic stability and global financial influence, which China does not currently seek to challenge.
What does Mitch Presnick think about the decline of US students studying in China?
He believes the dramatic drop in US students studying in China puts the US at a disadvantage, as understanding China on the ground is crucial for informed policy-making and strategic decision-making.
What does Mitch Presnick suggest as a way for the US to rebuild its manufacturing and tech competitiveness?
He suggests leveraging China's strengths in manufacturing and technology, encouraging Chinese companies to build factories in the US, and restoring vertically integrated industries to rebuild supply chains and tech competitiveness.
What is Mitch Presnick's view on the future of the US-China relationship under Trump?
He believes Trump will push for a new paradigm based on reciprocity and mutual interests, avoiding acrimony while using pressure tactics to achieve strategic goals, ultimately creating a more stable and sustainable relationship.
Why does Mitch Presnick think China does not want the renminbi to be a global reserve currency?
China prefers control over its economy and fiscal policy, which a non-convertible currency provides. It does not currently seek the responsibilities and vulnerabilities that come with being a global reserve currency.
What does Mitch Presnick think about the role of state-owned enterprises in China's economic model?
He highlights the advantages of China’s state-owned enterprises, such as low input costs for businesses due to state control of utilities like water, electricity, and internet, which boosts manufacturing efficiency and competitiveness.
Shownotes Transcript