Global trade disruption is a symptom of a deeper malaise | Mohamed El-Erian

Resolving US-China trade war is not enough to ward off what many fear is a looming worldwide recession It is only a matter of time until the escalating tensions between China and the US prompt many more economists to warn of an impending global economic recession coupled with financial instability. On 5 August, Bloomberg News Larry Summers, a former US treasury secretary who was also closely involved in crisis-management efforts in 2008-09, recently The Only Game in Town, all of these recent developments and also, of course, the growing US-China tensions are related in a meaningful way to two basic and persistent features of the global economy since the 2008 financial crisis. The first is the prolonged period in which …

Surprise! Huawei Can Actually Innovateand Win Fans

Huawei doesn’t leap to mind as an innovative company. In the US, the Chinese telecom giant is best known for the government’s national security concerns—and allegations that it stole intellectual property from companies like Cisco and Motorola. Yet Huawei was the fifth-biggest research and development spender in the world in 2017, according to a European Union report. Its €11.3 billion ($12.9 billion) R&D spend that year outpaced Intel (€10.9 billion), Apple (€9.7 billion), and Nokia (€4.9 billion). Huawei claims its investments over the years have paid off in the form of 87,805 patents—11,152 of which were granted in the US. Now Huawei is trying to turn those patents into cash. This month Reuters reported that Huawei wants Verizon to pay …

China’s Scientists Are the New Kids on the Arctic Block

For nearly a century, the Arctic has been a scientific playground for American, Canadian, and European researchers studying everything from magnetic fields to krill populations, as well as documenting rising temperatures and a changing climate. But with China increasingly expressing an interest in all things Arctic, a geopolitical storm is brewing. Traditional boundaries between science, commerce, and the military are melting as fast as the region’s sea ice. On Monday, US secretary of state Mike Pompeo scolded China for using civilian polar research to further its military and commercial goals, including opening up a new “Polar Silk Road” for trade and shipping. “China’s words and actions raise doubts about its intentions,” Pompeo said in Rovaniemi, Finland, where the eight members …