U.S. trade chief calls trying to change China's economy "crazy"

U.S. Trade chief calls trying to change China's economy "crazy".

Key points

• The other side: Greer's Obama-era predecessor, Michael Froman, has cautioned that China's export boom could ultimately set off the next global economic crisis.
• The world's ability to absorb China's excess production "is approaching a breaking point, " Froman wrote in Foreign Affairs earlier this month.
• "If we continued to do what they were saying, we would have 0% growth, like Canada, like the U.K., like Germany, " Greer remarked.
• Has spent years building a tariff wall against a slew of Chinese goods.
• Biden authorities largely kept those tariffs in place and climbed duties on other Chinese products, including electric vehicles.

U.S. Trade chief calls trying to change China's economy "crazy". Add Axios as your preferred source to. See more of our stories on Google.

"All these things where they say, 'Well, let's do more engagement. Let's talk more regarding savings and investment, '" Greer stated. "That's crazy to me."

"If we continued to do what they were saying, we would have 0% growth, like Canada, like the U.K., like Germany, " Greer remarked. While Canada grew 1.7% and the U.K, (Germany barely grew last year. 1.3%, compared with 2.1% in the U.S.).

Meanwhile, the major picture: The U.S. Has spent years building a tariff wall against a slew of Chinese goods.

President Trump has gone further in his second term, putting greater emphasis on shielding the U.S. From China's economic model, even as Washington continues trying to shape Beijing's behavior in areas like AI and technology.

Between the lines: "When people come and say we should get together with the Europeans, what I say is, there's nothing really different for us to be doing, " Greer remarked. "The question is, why aren't they doing things? Why aren't they taking action?"

"They should be doing what we're doing, and not the other way around."

Meanwhile, the other side: Greer's Obama-era predecessor, Michael Froman, has cautioned that China's export boom could ultimately set off the next global economic crisis.

For context, the world's ability to absorb China's excess production "is approaching a breaking point, " Froman wrote in Foreign Affairs earlier this month.

Rather than offer up on changing China's model, the U.S. Should build a "coalition of the willing" to pressure Beijing to rebalance before the adjustment comes in a far more painful way, he argued.

In short, U.S. Trade chief calls trying to change China' s economy " crazy&quot is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.