What ails the US job mar­ket

The Pak Banker - - Front Page - Zhang Zhoux­i­ang

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.

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