Yellen Urges China to Boost Consumers, As U.S. Seeks New Strategy to Compete with Chinese State-Driven Economy

Yellen is calling for China to increase consumer stimulus, similar to what the U.S. demanded of Japan in the 1990s. But China's situation is more complex than Japan's was back then.

Yellen rightly calls out China's heavy industrial subsidies that flood U.S. markets. But the U.S. must also boost its own economic competitiveness at home.

Trump's presidency was a lost opportunity, with antiquated tariffs that taxed Americans. He didn't bolster U.S. innovation to properly compete with China.

Xi has damaged China’s economy with party control priorities over supporting private sector innovation and market forces. This led to China's massive 2021-2023 stock crash.

The U.S. urgently needs its own proactive strategy to incentivize companies to disrupt China's state-driven economic model. Otherwise the U.S. risks falling dangerously behind.