What ails the US job market
through integrated manufacturing, services and innovation. That arguably could address the challenges, he said, but added that political division and ideological gridlock may constrain its implementation.
Ralph A. Cossa, president of Pacific Forum, Center of Strategic and International Studies, holds a similar view. Answering a question on the US presidential election and China after delivering a speech in Honolulu recently, he said, "the two parties (Democrats and Republicans) are always arguing" without solving problems and China often becomes a target of their firepower, especially concerning trade.
That's another of Ernst's concerns. The advanced manufacturing partnership neglects the consequences for international competitors like China. In a forthcoming study, "High Road or Race to the Bottom? Reflections on America's Manufacturing Futures", he analyzes the possible effects on China.
If the US succeeds in the transformative technologies, for example in the emerging "3D printing" or "laser-enabled additive manufacturing", the production facilities could shift to consumer countries, leading to falling demand for imports from China, whose integration into international trade and global production networks make it vulnerable to such transformations.
But the proliferation of such technologies could also create an opportunity for US-China cooperation, he said. Both countries have a common interest in developing effective new forms of global governance to manage the risks and conflicts, and avoid a vicious circle of hightech protectionism and trade and investment wars.