Defending trade is politically fraught in part because so many American leaders underestimated the impact of China’s rise on American workers and failed to ensure that the benefits were broadly shared.
That failure has changed Americans’ views of how our country relates to the rest of the world. A recent study reports that younger Americans are more skeptical than previous generations that trade is mutually beneficial for participating nations, part of a broader turn toward zero-sum thinking — the belief that gains for one group tend to come at someone else’s expense. The authors argue that the outlook of older generations was shaped by an era of higher growth, in which it seemed plausible that everyone’s boat would rise. Younger generations, by contrast, have been embittered, and policymakers can rebuild support for trade only by addressing those past failures.
The United States can do that by pursuing economic relationships with the world that include protections for the environment and for workers. Other nations will continue to provide industrial subsidies, and the United States can use similar policies to develop new industries, like the renewable energy sector. “We’re retaking control of our energy security and our energy future,” Ali Zaidi, Mr. Biden’s climate adviser, said in an interview with The Times’s editorial board. At the same time, America should continue to pursue deeper economic ties with allied nations, as in a recent agreement to allow electric vehicle batteries made with minerals from Japan to qualify for U.S. tax credits.
American engagement with China is complicated by China’s contradictions. The country remains eager for access to advanced technologies and global markets, but resists giving reciprocal access to its own markets. In recent months, even as China has ended pandemic restrictions and made a show of reopening its doors, it has made life difficult for foreign firms, with raids on corporate offices, for instance. Some measures, like the refusal of Chinese antitrust authorities to let the American chip maker Intel buy the Israeli chip maker Tower, appear to be responses to U.S. restrictions. But longstanding grievances remain unresolved. It has been 22 years since China promised to let Visa and Mastercard operate on equal terms, and 11 years since the W.T.O. ruled that China wasn’t keeping that promise, yet the companies still are struggling for access.
The best reason for optimism is that the two nations still depend on each other. China’s recent struggles — slowing growth, an imploding housing sector, high youth unemployment and capital flight — appear to be motivating a more open stance among Chinese policymakers. And after a period of escalating tensions, the Biden administration also has sought to calm the waters by sending a series of senior officials to the country. In recent years, Chinese airlines have largely refrained from placing new orders for Boeing airplanes, making a political point of buying jets from Airbus, its European rival. But Guillaume Faury, the Airbus chief executive, predicted in a recent interview that the trend would not continue. “I don’t believe that China can rely on one aircraft manufacturer,” he said. “They need competition.” The first narrow-body jets produced by a Chinese company, Comac, entered commercial service earlier this year. The engines were manufactured in Durham, N.C.