{"id":598470,"date":"2023-11-21T22:30:00","date_gmt":"2023-11-21T19:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/matthews-bidenomics-is-xinomics-with-american-characteristics-the-hill\/"},"modified":"2023-11-21T22:30:00","modified_gmt":"2023-11-21T19:30:00","slug":"matthews-bidenomics-is-xinomics-with-american-characteristics-the-hill","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/matthews-bidenomics-is-xinomics-with-american-characteristics-the-hill\/","title":{"rendered":"#Matthews:\u00a0Bidenomics\u00a0is Xinomics\u00a0with American characteristics\u00a0\u00a0 | The Hill"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/11\/TOP-Biden-APEC_111623_AP_Jeff-Chiu.jpg?w=900\" \/><\/p>\n<div>\n<p>            <iframe title=\"Audio Article\" id=\"instaread_iframe\" name=\"instaread_playlist\" scrolling=\"no\" allow=\"autoplay\" style=\"display:block\" width=\"100%\" height=\"100%\" frameborder=\"no\"><\/iframe><\/p>\n<p>Deng Xiaoping, who led China from 1978-89,\u00a0famously described his effort to integrate\u00a0limited,\u00a0free market capitalism into China\u2019s communist system as \u201c<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a>ism with Chinese characteristics.\u201d\u00a0Taking that step helped China become an economic powerhouse and the world\u2019s second largest economy.\u00a0\u00a0<\/p>\n<p>Chinese President Xi Jinping\u00a0has been steadily undoing Deng\u2019s reforms\u00a0by imposing\u00a0top-down,\u00a0command-and-control\u00a0policies, and China is suffering for it\u00a0both economically and politically. Ironically,\u00a0President Joe Biden has been abandoning the\u00a0U.S. version of\u00a0free market capitalism that Deng admired and increasingly embracing variations of Xi\u2019s policies. Call it Xinomics\u00a0with American characteristics.\u00a0Here are some examples.\u00a0\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p><strong>Industrial policy.<\/strong>\u00a0The\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.imf.org\/en\/Publications\/fandd\/issues\/Series\/Analytical-Series\/industrial-policy-and-the-growth-strategy-trilemma-ruchir-agarwal\">International Monetary Fund (IMF) says<\/a>, \u201c\u2018Industrial policy\u2019 refers to government efforts to shape the economy by targeting specific industries, firms, or economic activities.\u201d The IMF explains that \u201cIn the US, industrial policy is no longer a taboo subject.\u201d Indeed, it is one of Biden\u2019s chief strategies, and has also\u00a0been key to Xinomics.\u00a0\u00a0\u00a0<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.imf.org\/en\/Publications\/fandd\/issues\/Series\/Analytical-Series\/industrial-policy-and-the-growth-strategy-trilemma-ruchir-agarwal\">According to the IMF<\/a>, industrial policy\u2019s\u00a0goal is \u201c(i) enhancing national security by promoting self-sufficiency in key industries, (ii) supporting job-rich and inclusive growth, (iii) revitalizing left-behind communities\u2026.\u201d\u00a0You will find references to all three in Biden\u2019s CHIPS Act (promoting semiconductor manufacturing), his infrastructure bill and the Inflation Reduction Act,\u00a0which showers money on various green energy projects.\u00a0\u00a0<\/p>\n<p>As\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.npr.org\/2023\/04\/16\/1142356840\/biden-industrial-policy\">National Public Radio reported<\/a>\u00a0last April, \u201cBiden is making the case for his brand of industrial policy \u2014 using taxes, subsidies and regulations to systematically shape the economy.\u201d\u00a0\u00a0<\/p>\n<p>How is that different from Xi Jinping\u2019s policies?\u00a0Xi uses taxes, subsidies\u00a0and regulations to shape China\u2019s economy the way he wants it, not the way Chinese consumers want it. Xi may use a heavier hand in imposing his industrial policies, but that\u2019s\u00a0a matter of degree, not substance.\u00a0\u00a0<\/p>\n<p>And don\u2019t\u00a0think our allies and major trading partners haven\u2019t\u00a0noticed. The\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/b1079606-5543-4fc5-acae-2c6c84b3a49f\">Financial Times writes<\/a>\u00a0that Biden\u2019s industrial policies have \u201cdrawn fire from European and Asian allies, who claim their deep subsidies and made-in-America requirements amount to protectionism.\u201d\u00a0Those same criticisms are leveled at China.\u00a0\u00a0<\/p>\n<p><strong>Bypassing democracy.<\/strong>\u00a0For all of Biden\u2019s\u00a0bellyaching about the rising threats to democracy, his administration regularly bypasses the democratic process by imposing major policy changes and regulations without a vote in Congress.\u00a0\u00a0\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>On his first day in office, Biden released a presidential memorandum (like\u00a0an executive order) titled\u00a0\u201c<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.whitehouse.gov\/briefing-room\/presidential-actions\/2021\/01\/20\/modernizing-regulatory-review\/\">Modernizing Regulatory Review<\/a>.\u201d He says, \u201cThese recommendations should provide concrete suggestions on how the regulatory review process can promote public health and safety, economic growth, social welfare, racial justice, environmental stewardship, human dignity, equity, and the interests of future generations.\u201d\u00a0\u00a0<\/p>\n<p>In essence, he\u00a0is urging hundreds of regulatory bodies and agencies to aggressively implement the Biden economic and social vision. If Biden could get his agenda passed by\u00a0Congress, he would. But he can\u2019t. If states, companies\u00a0or\u00a0individuals successfully sue the agencies to stop their regulatory overreach, those agencies\u00a0just try again with\u00a0a different <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach.\u00a0\u00a0\u00a0<\/p>\n<p>Thankfully,\u00a0U.S. courts are one big difference\u00a0between Xi and Biden. The Chinese Communist Party and the courts rubber-stamp Xi\u2019s policies. In the United States, the courts are still independent. They are one of the few obstacles to Biden\u2019s agenda, which is why so many Democrats\u00a0are intent on reforming the U.S. Supreme Court.\u00a0\u00a0\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p><strong>Government-mandated boondoggles.<\/strong>\u00a0Xi has a\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/allthatsinteresting.com\/chinese-ghost-cities\">real estate problem<\/a>\u00a0on his hands. He pushed for a massive increase in commercial buildings and residential housing that no one wanted. Now, there are ghost-cities\u00a0covered with empty high-rise\u00a0buildings.\u00a0\u00a0\u00a0\u00a0<\/p>\n<p>Biden, by contrast, has a green energy boondoggle on his hands. He has poured subsidies and tax breaks on\u00a0a whole host of green energy projects, and many, if not most, of those efforts are now failing.\u00a0\u00a0<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.usatoday.com\/story\/money\/personalfinance\/2023\/11\/14\/ev-sales-2023-slow-inventory-pile-up\/71572499007\/\">Electric Vehicles (EVs)\u00a0are backing up<\/a>\u00a0on car lots \u2014 sort like Xi\u2019s empty buildings \u2014 and the car makers are slashing prices to try and move them. Car makers are dramatically\u00a0scaling\u00a0back their grossly ambitious\u00a0EV production estimates. In addition, rising interest rates have forced other types of green energy companies \u2014 e.g.,\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wbur.org\/news\/2023\/10\/05\/offshore-wind-massachusetts-vineyard-climate-whale-deaths-lawsuits\">offshore wind farms<\/a>\u00a0\u2014 to postpone or abandon their projects.\u00a0\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>To be very clear, all of\u00a0these green energy efforts were the result of government policies,\u00a0mandates\u00a0and taxpayer subsidies \u2014 like China\u2019s failed building\u00a0boom.\u00a0\u00a0\u00a0<\/p>\n<p><strong>One big difference.<\/strong>\u00a0There is one way in which Biden is not following Xi\u2019s lead: the military buildup. China has embarked on the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.defense.gov\/News\/News-Stories\/Article\/Article\/3566970\/us-focuses-on-deterrence-as-china-raises-stakes-in-indo-pacific\/\">largest military buildup<\/a>\u00a0since 1930s Germany. China now has the largest navy and standing army. And the country is beginning to use that power to expand its territory\u00a0and influence.\u00a0\u00a0\u00a0<\/p>\n<p>By contrast, Biden has been\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.defensenews.com\/congress\/budget\/2023\/05\/29\/debt-ceiling-agreement-locks-in-bidens-proposed-defense-budget\/\">scaling back military spending<\/a>\u00a0as a percent of GDP. That may come\u00a0back\u00a0to haunt him \u2014 and the country \u2014 if China or Russia\u00a0or Iran, or all three,\u00a0become more belligerent.\u00a0\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<p>The irony in Biden\u2019s embrace of Xinomics\u00a0is that it is free markets and capitalism that created U.S. prosperity. Even China benefited greatly from\u00a0its more limited free market experiment. Xi\u2019s top-down malinvestment policies are slowly undermining China\u2019s economy by redirecting capital from where it\u2019s\u00a0most productive. Having inherited one of the strongest economies the world has ever known, Biden\u2019s embrace of Xinomics\u00a0and malinvestment will take\u00a0the U.S. down the same slow-growth path.\u00a0\u00a0\u00a0<\/p>\n<p><em>Merrill Matthews is a resident scholar with the Institute for Policy Innovation in Dallas, Texas. Follow him on X@MerrillMatthews.<\/em>\u00a0\u00a0<\/p>\n<\/div>\n<p>Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/opinion\/4321120-matthews-bidenomics-is-xinomics-with-american-characteristics\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Deng Xiaoping, who led China from 1978-89,\u00a0famously described his effort to integrate\u00a0limited,\u00a0free market capitalism into China\u2019s communist system as \u201csocialism with Chinese characteristics.\u201d\u00a0Taking that step helped China become an economic powerhouse and the world\u2019s second largest economy.\u00a0\u00a0 Chinese President Xi Jinping\u00a0has been steadily undoing Deng\u2019s reforms\u00a0by imposing\u00a0top-down,\u00a0command-and-control\u00a0policies, and China is suffering for it\u00a0both economically and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":598471,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/11\/TOP-Biden-APEC_111623_AP_Jeff-Chiu.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[134344,73798,134661,124783,115,4947,134345],"class_list":["post-598470","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-administration","tag-defense","tag-energy-environment","tag-international","tag-news","tag-opinion","tag-state-watch"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/598470","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=598470"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/598470\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/598471"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=598470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=598470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=598470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}