Macro Hive Conversations With Bilal Hafeez Ep. 304: Zongyuan Zoe Liu on Calculated China vs Unpredictable US
Apr 17, 2025
Zongyuan Zoe Liu is a Senior Fellow for China studies at the Council on Foreign Relations, focusing on international political economy and global markets. In this conversation, she delves into the complexities of US-China relations, tracing their evolution from the Obama era to now. Liu discusses Xi Jinping's worldview shaped by generational trauma and explains China's strategic response to tensions. She also examines the push for de-dollarization among BRICS nations and reflects on the broader geopolitical implications for international trade and finance.
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China Navigates Tense Alliances
- China seeks economic partnerships beyond formal alliances, even with countries it has disputes with.
- Rising global protectionism targets China, forcing it to boost domestic consumption and diversify trade partners.
Trade War Harms Both Sides
- Trade war creates no winners: tariffs increase costs for US consumers and manufacturers.
- China faces severe challenges including rising unemployment in export-reliant small and medium enterprises.
China Aligns Consumption with Industry
- China shifts from export-led growth to boosting domestic consumption tied to strategic industries.
- Instead of direct stimulus, China promotes consumption in sectors like AI and EVs to support industrial goals.
