Duel of Titans

Published in Folha de S.Paulo
(Brazil) on 14 March 2021
by Editorial (link to originallink to original)
Translated from by Ana Bath. Edited by Helaine Schweitzer.
Geopolitical competition between the U.S. and China superpowers enters a new stage.

Profound changes accelerated or created by the pandemic are taking place in the world economy and geopolitics. If it is too early to distinguish all its ramifications, one of them is already clear: a new stage in the competition between the two great powers, the U.S. and China.

In the United States, the huge progress made with the vaccine rollout and the light at the end of the pandemic tunnel is making room for a period of growth and innovation. With the new $1.9 trillion fiscal stimulus, the largest stimulus bill in history, it is believed that the American gross domestic product will grow at least 6% in 2021, the highest rate in decades, making it possible to return to full employment as early as next year.

The experiment has the support of the Federal Reserve, which should keep interest rates very low at least until inflation threatens to exceed 2% per year.

In addition to the oversized stimulus package, the program’s significance stems from an ideological point of view: There will be a serious attempt to combat inequality. Having seen the political consequences of inequality, as with the presidency of Donald Trump, if more opportunities are created, American democracy has a new chance for renewal.

Another focus of Joe Biden’s stimulus program is expanding investment in sustainable technologies and infrastructure, as well as ensuring leadership in crucial areas for the next stage of development, such as artificial intelligence, quantum computing and biotechnology.

Biden also promises to work with allies to reinforce the appeal of Western democracy in the eyes of the world, in order to contain the expansion of Chinese influence.

China, for its part, is not resting. The government has just released its 14th five-year plan, which provides resources for innovation, mastering the same essential technology for the future, strengthening cutting edge industries, and reducing carbon emissions.

China’s focus remains on infrastructure, an area of influence through investment in developing countries. There will also be an effort to internationalize the Chinese currency.

There is growing concern on both sides about the security of supply chains. Export controls for sensitive technologies that may have military use and a guarantee of domestic supply, among others things, will keep the competition fierce.

In common challenges, such as climate change, we can expect cooperation, but geopolitical rivalry should mobilize more of the resources of these two great powers.


EDITORIAL  O QUE A FOLHA PENSA

Duelo de titãs

Competição geopolítica entre as superpotências EUA e China entra em nova etapa


Aceleradas ou inauguradas pela pandemia, estão em curso profundas transformações na economia e na geopolítica mundiais. Se ainda é cedo para distinguir todas as suas ramificações, uma delas já é nítida —uma nova etapa na competição entre as duas grandes potências mundiais, EUA e China.No caso dos Estados Unidos, o enorme avanço obtido na vacinação e a luz no final do túnel da pandemia abrem espaço para um período de crescimento e inovação.Com o novo estímulo fiscal de US$ 1,9 trilhão, o maior da história, acredita-se que o PIB americano possa crescer pelo menos 6% em 2021, a maior taxa em décadas, e viabilizar o retorno ao pleno emprego já no ano que vem.O experimento conta com o apoio do Federal Reserve, que deve manter os juros muito baixos ao menos até quando a inflação ameaçar superar 2% ao ano.Além da cifra agigantada, a significância do programa decorre do que sinaliza do ponto de vista ideológico —haverá tentativa séria de combater a desigualdade. Tendo assistido suas consequências políticas, como a presidência de Donald Trump, a democracia americana tem nova chance de renovação se criar mais oportunidades.Outra parte do programa de Joe Biden é ampliar investimentos em tecnologias sustentáveis e infraestrutura, além de garantir a liderança em áreas cruciais para a próxima etapa de desenvolvimento, como inteligência artificial, computação quântica e biotecnologia.Biden promete ainda trabalhar com aliados para reforçar aos olhos do mundo o apelo da democracia ocidental, de modo a conter a expansão da influência chinesa.A China, por seu turno, não dorme. O governo acaba de divulgar seu 14º plano quinquenal, que prevê recursos direcionados para inovação, domínio das mesmas tecnologias essenciais para o futuro, reforço de industrias de ponta e redução de emissões de carbono.Permanece o foco na infraestrutura, área de projeção de influência por meio de investimentos em países em desenvolvimento. E haverá esforço para a internacionalização da moeda chinesa.De ambos os lados, há preocupação crescente com a segurança das cadeias de fornecimento. Controles de exportação de tecnologias sensíveis e que possam ter uso militar e garantia de suprimento doméstico, entre outros, manterão a competição acirrada.Nos desafios comuns, como a mudança climática, espera-se cooperação, mas a rivalidade geopolítica deverá mobilizar mais dos recursos das duas grandes potências.
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