[The Economist] What America’s protectionist turn means for the world

Summary

1. American workers' complaints about global frims that get subsidies from US govt.

2. Subsidy policy is to protect American industrial base. It is expected to "fend off the challenge from a rising China and re-orient the economy towards greener growth."

3. However, America's allies are "startling shift." It is because of the movement when Donald Trump levied tarrifs on  products from America's allies. Moreover, it is because of emergence of subsidies.(scale + America-first emphasis; exact price estimation is impossible becuase it is a form of tax credit)

4. Reason: China's acendancy over its industrial policies - discruption of supply chain. This is mainly for drawing business from China.

5. Firms who do not get the subsidies from the US government: "it's invidious!"

6. Even though the firms who get the subsidies from the US government, they also concern some aspects. They fret about this new adjustment; "The chipmaking giants fret about breaking up networks of expertise in their most advanced manufacturing, and surrendering the technological leads that sustain their existence."

7. "As America and its allies offer more aid, these firms will only be too happy to lap it up. In the process, there will be a duplication of efforts across borders, a waste of public funds and recrimination between countries meant to be co-operating. It may take hundreds of billions of dollars to relearn why America was once an opponent, not an advocate, of subsidies. "

 

Vocab (definition from Dictionary.com)

in line with	conforming, ~의 방침에 의거
	Do we accept this status quo, or do we actively work to change it?” Mr Froman’s choice, in line with decades of his country’s trade policies, is the latter: try to tear down the subsidies hurting American exporters and gumming up global trade
thud	- a dull sound, as of a heavy blow or fall. - a blow causing such a sound.
	Now, return to the present—with a thud.
subsidy	a direct pecuniary aid furnished by a government to a private industrial undertaking, a charity organization, or the like.
unabashed	not ashamed, disconcerted, or apologetic; boldly certain of one's position.
rail aginst	to utter bitter complaint or vehement denunciation (often followed by at or against)
	Rather than trying to get other countries to cut subsidies, the Biden administration’s unabashed focus is on building a subsidy architecture of its own, complete with the kinds of local-content rules that American officials once railed against
nitty-gritty	the essential substance or details of a matter; basics; crux
	Officials have started getting into the nitty-gritty of how to distribute the cash
fend off	- to ward off (often followed by off) - to defend. - to resist or make defense
	It is, they believe, the only way that America can protect its industrial base, fend off the challenge from a rising China and re-orient the economy towards greener growth.
stalwart	strongly and stoutly built; sturdy and robust.
	A country that they had counted on as the stalwart of an open-trading world is instead taking a big step towards protectionism
rachet up	to move by degrees (often followed byup or down)
	In some ways, though, it is this second crack—the present ratcheting up of subsidies—that hurts more.
wind up	the conclusion of any action, activity, etc.; the end or close.
	Credit Suisse, a bank, thinks American solar panels could wind up the cheapest in the world by the late 2020s.
hefty	- heavy; weighty:a hefty book. - big and strong; powerful; muscular:a hefty athlete. - impressively large or substantial
	Wind, solar and geothermal projects will all receive heftier subsidies if they use American steel and iron.
ascendancy	the state of being in the ascendant; governing or controlling influence; domination.
	China’s ascendancy is the starting point
dubious	doubtful
	The economic thinking that underpins much of this logic is dubious.
inexorable	- unyielding; unalterable - not to be persuaded, moved, or affected by prayers or entreaties
	Yet its political momentum is, for the time being, inexorable.
angst	a feeling of dread, anxiety, or anguish.
	This readjustment is a source of angst, even for some businesses.
fret about	to feel or express worry, annoyance, discontent, or the like:
	The chipmaking giants fret about breaking up networks of expertise in their most advanced manufacturing, and surrendering the technological leads that sustain their existence.
emollient	having the power of softening or relaxing, as a medicinal substance; soothing, especially to the skin:
	President Biden emolliently suggests that America “never intended to exclude folks who were co-operating with us”.
invidious	offensively or unfairly discriminating; injurious:
	Instead, governments elsewhere face an invidious choice about whether or not to join the subsidy race
vie for (vying for)	take a crack at, ~을 위해 겨루다, 경쟁하다
	All have national champions, not to mention scores of startups vying for a slice of the action
lap up	to believe or accept eagerly and uncritically
	As America and its allies offer more aid, these firms will only be too happy to lap it up.
fiendish	diabolically cruel and wicked.
	Yet even with the utmost sincerity, co-ordination is bound to be fiendishly hard.
recrimination	a countercharge, 맞대응
	In the process, there will be a duplication of efforts across borders, a waste of public funds and recrimination between countries meant to be co-operating.
staunch	firm or steadfast in principle, adherence, loyalty, etc., as a person
	Katherine Tai, the current trade representative, is a staunch believer in subsidies
not to mention	needless to say; also, not to speak of; to say nothing of. In addition to
	All have national champions, not to mention scores of startups vying for a slice of the action

Reference

- The Economist, What America’s protectionist turn means for the world

- Dictionary.com