China, Trade and Power
The Hinrich Foundation is pleased to announce the publication of “China, Trade and Power: Why the West’s Economic Engagement Has Failed” by Stewart Paterson. We sponsored this book to promote reasoned and informed debate on the trade relationship between the West and China.
As the trading nations of the world embark on a change of direction in their policies toward trade, we believe it is of the utmost importance that we understand the true and full extent of how past policies of engagement with China have impacted Western societies.
About the book
“China, Trade and Power: Why the West’s Economic Engagement Has Failed” describes the unintended consequences of the policy of engagement with China which led to its accession to the WTO in 2001 without critical economic reforms such as a floating exchange rate.
The thesis of this book is that China’s accession to the WTO lifted hundreds of millions of people out of poverty in China, cementing the legitimacy of the Chinese Communist party and making China’s mercantilist model attractive to emerging economies in Asia.
At the same time, there have been remarkable but unintended impacts on standards of living in the West. The supply-side deflationary shock created by China’s low-cost exports, coupled with the inflation-targeting response of Western central banks, has led to a fall in real incomes for the many and a rise in asset prices for the few, raising questions about the effectiveness of liberal economic models.
It is our sincere hope that through scholarly work such as this book, all nations’ policy makers, business leaders and civil societies can be equipped to contribute to the design of mutually beneficial approaches for sustainable global trade.