The World Turned Upside Down

Starred review from December 1, 2020
A veteran U.S. trade negotiator offers a cogent overview of how the U.S. grievously misjudged China's response to globalization. When China joined the World Trade Organization in 2001, many observers had high hopes that it would become what former deputy secretary of state Robert Zoellick described as "a responsible stakeholder in the global system." Indeed, how could the internet allow China to be anything but more liberal and democratic? In a well-rendered, layered narrative, Prestowitz carefully examines the na�ve expectations by U.S. and other Western leaders going back to the Tiananmen Square massacre in 1989--a clear red flag that was swiftly ignored in the rush to do business with the authoritarian state. As a labor, trade, and commerce expert, the author deftly sifts through the evidence over the decades to record how China systematically rejected attempts by liberal leaders to manipulate it for their profit. Meanwhile, in less than a decade after 2001, the Chinese managed to quadruple GDP via policies that "protected and subsidized investment aimed at developing indigenous capacity in industries characterized by economies of scale and rapid technological advances in the context of potentially large export markets." Japan, Korea, Taiwan, and Singapore had deployed similar strategies, all of which defied the "expectations of Anglo-American economists, journalist, and trade officials." China was clearly not going to become a responsible "stakeholder." Under President Xi Jinping, writes Prestowitz, "China seems to be determined to resurrect the old Middle Kingdom as the new world hegemon." The Chinese leadership grasps their importance in the complex game of global trade, and they are working hard on the highly ambitious One Belt One Road project. Most alarming, notes the author, is the infiltration of the Communist Party into every aspect of Chinese life. Prestowitz doesn't just point out problems; he offers a detailed, 25-page "Plan for America." An excellent comprehensive study from an expert on the subject.

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