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© News1“Even with the Joe Biden administration, international relations will never go back to what it used to be” (Michael Spence, Senior Lecturer at New York University).
“Even after Biden’s election, America’s policy toward China will not be revolutionary.” (Steven Schwartzman, President of Blackstone)
World economic experts predict that even if Biden takes office in January next year, the conflict between the United States and China will continue. Furthermore, economies around the world are expected to have mixed joys according to ‘Bidenomics’, which promoted investment in renewable and green energy.
● “There will be no revolutionary change in Chinese politics”
At the international conference of the World Economic Research Institute-KB Financial Group at the Westin Chosun Hotel in Jung-gu, Seoul on the 9th, world economic experts predicted that the US hardline measures against China will continue in the Biden administration. . President Schwartzman, also known as Trump’s economic teacher, predicts that the conflict between the United States and China will continue, especially in the field of technology. He said: “China has grown up with advanced external technologies, such as using firewalls supplied by the United States and South Korea to control their citizens. What the United States asks of China is to open up the economy fairly.” As a result of China’s rapid growth under the protection of tariff barriers, he believes that, although it has become the world’s second-largest economy, the conflict will inevitably continue as the market is not yet open. However, he said, “it is not possible for the two countries to deviate (decoupling) because the United States and China represent 35 to 40% of the global economy and the exchanges between the two countries are already significant.” “The key is how willing to engage in areas that require global standards, like.”
Regarding relations between the United States and China, Professor Spence, Nobel Prize in Economics, also explained that “conflicts can continue in the sector of digital technology directly related to national security.” He noted that “Biden must restore the trade and investment system in the face of a complex environment such as the rise of Asian countries and advances in digital technology at home and abroad.”
It is also anticipated that the union of the Democratic administration and the Republican Senate could be a stumbling block in promoting Bidnomics. Francis Fukuyama, a professor at Stanford University, said: “The United States will strengthen relations with its allies, but since the Democratic Party has not fully taken charge of state affairs, it will not return before 2016 (when the Trump administration began ).
● “Biden’s ecological stance, impact on the global economy”
The experts analyzed that the ecological stance established by Bidnomics will have a significant impact on the global economy. Henry Fernandez, president of Morgan Stanley Capital International (MSCI), said in an online conversation that day: “The chosen Biden has made ESG (environmental, social and governance) more important.” It’s going to come out. “
Former UN Secretary-General Ban Ki-moon, who attended the event, positively praised Biden’s decision to strengthen international cooperation, saying: “The United States will return to the negotiating table for the Paris Agreement on climate change.”
Biden-elect has committed to expanding investment in the green energy sector with the goal of zero carbon emissions by 2050. The key is to create 1 million jobs by investing 2 trillion dollars (about 2.3 trillion won) over a four-year period.
When the green and renewable energy policy is implemented, the demand for related items such as batteries, solar power and electric vehicles will increase in the US, and related domestic companies are expected to benefit from the expansion of exports. However, Biden’s promise to introduce a ‘carbon adjustment tax’ by 2025, emphasizing the response to global climate change, could be a burden on domestic companies. The carbon adjustment tax is a tax based on the use of fossil energy such as oil and coal.
Major domestic industries, such as petrochemicals, steel, shipbuilding, and high-carbon automobiles, are expected to be directly or indirectly affected. Seol Song-i, Senior Researcher at the Korea International Trade Association Trade Support Center, said: “The cost of expanding the facilities and the additional fees to meet environmental obligations will surely be a burden on businesses. It can act as a ‘trade barrier’ to protect America’s own industry, so domestic companies need to be prepared. ”
Reporter Kang Yoo-hyun [email protected]
Sejong = former reporter [email protected] Go to reporter’s page>
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