US-China rivalry drives the retreat of market economics

Taiwan manufactures a very large amount of critical tech components; the shortage today already drags on recovery and with China’s threats of invasion it makes sense from many perspectives to hedge. 

The return to protectionism is almost entirely due to how China is using its economic might, rather than having it become a responsible stakeholder, its reactionary approach is now causing a response that isn’t yet coordinated. Already in 2007(*) it was evident that China was not acting according to the rules of international trade and acted even far outside the red lines and yet successive governments failed to act, somehow failing to accurately assess the magnitude of the transgressions. Trump placed it on the agenda but only made matters worse by his unilateralist approach. 

Biden now has to embrace the protectionist narrative because of changing political tides. He needs to win the midterms and steal Republican thunder and it’ll take years to come back to a more Atlantic if not internationalist approach. Even so the greater wave of political mayhem that climate change will cause will dwarf what we’re going through now.