Kevin Duffy compares the present U.S.-China cold war with U.S. vs. Japan in the late 1980s

The present U.S.-China cold war rhymes with the U.S.-Japan clash of the late 1980s, except that in many ways the roles are reversed.  Today it is the U.S. who smacks of hubris while China lacks confidence.  Ironically, the U.S. adopted many of the pillars of the flawed Japanese model, including protectionism, industrial policy (CHIPS Act), stimulus, bailouts, zero interest rates and trusting of authority.  In the battle of ideas, Japan won.

~ Kevin Duffy, "Bull in the China Shop," The Coffee Can Portfolio, December 20, 2024