New Books in Economics Ben A. Vagle and Stephen G. Brooks, "Command of Commerce: America's Enduring Economic Power Advantage over China" (Oxford UP, 2025)
Aug 21, 2025
Join Ben A. Vagle, a Stanford law student and PhD candidate, and Stephen G. Brooks, a Dartmouth government professor, as they dissect America's economic edge over China. They challenge the myth of China's rising power, revealing that U.S. multinational corporations dominate high-tech sectors. The duo explores the potential for America to impose significant economic damage on China during a conflict while discussing the strategic importance of alliances. Dive into their analysis of trade dynamics, rare earth export dependencies, and the future of U.S.-China relations.
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Profits Reveal Economic Choke Points
- Profits reveal which firms produce hard-to-replace, geopolitically significant goods.
- Profits are the best proxy for economic choke points and long-term leverage in global commerce.
Firm Profits Outsize GDP Comparisons
- Multinational profits concentrate U.S. economic power far beyond GDP comparisons.
- U.S. firms generate 38% of global profits and 55% in high-tech sectors, while China generates ~16% and ~6–7% respectively.
Multilateral Cutoff Magnifies China’s Losses
- A multilateral cutoff would harm China far more than the U.S. in the short run.
- In modeled scenarios, China's short-term losses are 5–11 times larger than America's when allies cooperate or a blockade occurs.
