DeepSummary
The episode explores the origins of the US-China trade relationship and how American entrepreneurs played a crucial role in recognizing China's potential as a manufacturing hub in the 1970s. Guest Elizabeth Engelson, author of the book 'Made in China', discusses how the convergence of economic changes in both countries facilitated trade ties, with the US seeking new manufacturing bases and China experimenting with reforms.
Engelson highlights the pioneering role of small-scale American importers like Veronica Yap, who began importing Chinese goods and introducing them to US consumers, helping shift cultural perceptions. She explains how large US corporations also sought to capitalize on China's cheap labor, influenced by domestic factors like Nixon's economic policies and the 1974 Trade Act.
The discussion also touches on the tensions between diplomatic and economic goals, the evolution of 'Made in China' labeling, and the limitations of current political rhetoric around trade that fails to account for modern global supply chains. Engelson argues for a more nuanced understanding of US-China economic interdependence as a product of deliberate decisions by various actors.
Key Episodes Takeaways
- The US-China trade relationship emerged from a convergence of economic shifts and entrepreneurial efforts in both countries during the 1970s, not solely from China's reforms.
- American entrepreneurs like Veronica Yap played a pivotal role in introducing Chinese goods to US consumers and developing trade expertise with China.
- Large US corporations sought to capitalize on China's cheap labor, influenced by domestic economic policies like Nixon's actions and the 1974 Trade Act.
- There were tensions between diplomatic goals and economic interests in fostering US-China trade ties, with labor concerns often sidelined.
- Current political rhetoric around trade often fails to account for the complexities of modern global supply chains and the fluidity of manufacturing across borders.
- The 'Made in China' label emerged from 19th-century nationalist trade policies but has taken on new meanings in the age of globalized production.
- A more nuanced understanding of US-China economic interdependence is needed, recognizing it as a product of deliberate decisions by various actors on both sides.
- The US-China trade relationship has evolved significantly since its origins, with shifting power dynamics and economic priorities shaping its trajectory.
Top Episodes Quotes
- “It operated in terms, as I mentioned earlier, of the cultural transformation of accepting regular, everyday goods that were made in China. But it also operated at, as you mentioned, an expertise level. This is a new generation of american business people who have been shut out of the China market.“ by Elizabeth Engelson
- “And so what the trade act did was that it gave the powers some powers of tariff making and other sort of conditions on trade. They gave those powers to the president, to the executive branch.“ by Elizabeth Engelson
- “And yet politically and rhetorically, the conversation about trade and the conversations about China remain very bound by the nation state. They remain bound by very early 20th century notions of made in China represents China, and that's a threat, and made in the USA is the solution.“ by Elizabeth Engelson
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Episode Information
Odd Lots
Bloomberg
6/27/24
From cars to toys to clothes, we're just used to seeing the label "Made In China" on all sorts of things. But how did China become a go-to destination for manufactured goods in the first place? Who actually recognized that there was a huge opportunity to tap the abundant, low-cost labor to sell goods to Western consumers? On this episode of the podcast we speak with Elizabeth Ingleson, a professor at the London School of Economics and the author of the book Made in China: When US-China Interests Converged to Transform Global Trade. Ingleson traces the roots of the US-China trade relationship to a handful of US entrepreneurs in the early 1970s who first went into the country and recognized its opportunity as an export powerhouse. We discuss who these individuals were, the obstacles they had to overcome, and how they reshaped the entire global economy.
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