Mar 22, 2017

Study: Chinese competition crippled U.S. innovation

Andrew Harnik/AP

A growing body of research is confirming the Trumpian view that allowing China's accession to the WTO had negative effects on the U.S. economy. The latest entry into this genre comes from David Autor of MIT, who along with several colleagues studied the relationship between China's joining the WTO and a decline in manufacturing innovation.

Expand chart
Data: David Autor, MIT; Chart: Andrew Witherspoon / Axios

According to the research, companies that faced increased competition from Chinese imports "experienced a significant decline in their patent output," which is used a proxy for innovation. This suggests that when faced with tough competition, firms pull back on research and development spending, which also hampers long-term economic growth.

Why it matters: Unlike Mexico, China has many barriers that prevent foreign companies from accessing its market, and it also does much to subsidize its own exporters. There is increasing evidence that shows China's WTO accession and its protectionist policies hurt the U.S. economy.

Go deeper

19 mins ago - World

Kremlin says Trump discussed inviting Russia to G7 in call with Putin

President Trump and Russian President Vladimir Putin at their bilateral meeting at the G20 Osaka Summit 2019, in Osaka, Japan in 2019. Photo: Mikhail Svetlov/Getty Images

President Trump and Russian President Vladimir Putin spoke on Monday about Trump's plans to expand September's G7 meeting in Washington to include Russia, according to the Russian government's readout of the call.

The big picture: The phone call between the two leaders, which the Kremlin says was initiated by Trump, comes amid six consecutive days of mass unrest in the U.S. over police brutality and racial inequality. The White House confirmed the call took place and said a readout was forthcoming.

Facebook employees stage "virtual walkout"

Screenshot of an image some Facebook employees are adding to their internal profiles, with or without the hashtag, to protest company policy.

"Dozens" of Facebook employees staged a "virtual walkout" Monday over the company's decision not to take action against President Trump's provocative messages in the face of nationwide protests against police violence, the New York Times reports.

Why it matters: While Twitter added fact-check labels and hid the president's most inflammatory tweet — "when the looting starts, the shooting starts" — Facebook has said Trump's statements do not violate its policies, and that the platform aims to promote free speech.

Updated 1 hour ago - Politics & Policy

Trump lashes out at governors, urges them to "dominate" protesters

President Trump berated the nation’s governors in a video teleconference call Monday, calling many of them "weak" and demanding tougher crackdowns on the protests that erupted throughout the country following the killing of George Floyd, according to multiple reports.

The big picture: Trump blamed violence on the "the radical left" and told the governors, who were joined by law enforcement and national security officials, that they have to "dominate" protesters and "arrest people" in order to bring an end to the unrest.