Recommended Weekend Reading
Looking at U.S. - China Policy Challenges in Advance of the Xi-Trump Meeting, Will the AI Data Center Boom Threaten the Trump Manufacturing Revival?, and Looking at the Supply Chain Chokepoints in Quantum
October 24 - 26, 2025
Below are a number of reports and articles we read this past week and found particularly interesting. Hopefully, you will find them both interesting and useful. Have a great weekend.
A Look at Major Policy Issues for Both the U.S. and China
China’s Two Economy Problem Semafor
At a glance, China’s export-focused manufacturing sector is buoyant, racing away from the US and other advanced economies in areas including batteries, robotics, and biotechnology. And yet its domestic economy is in deep crisis, suffering from spiraling levels of joblessness, plunging consumer confidence, and falling business investment in the midst of a real estate collapse. To understand China is to believe all these things to be true. It is an economy moving fast and slow at the same time, a tech superpower that creates opportunities for PhD scientists but not its underclass of rural workers, a nation that manufactures a third of everything made in the world but can’t stir demand at home. Its growth model is so lopsided it is unbalancing the global economy. In short, China is at war with itself; taking the long view, the current US-China trade spat is a sideshow.
How China Raced Ahead of the U.S. on Nuclear Power New York Times
While U.S. nuclear construction costs skyrocketed after the 1960s, they fell by half in China during the 2000s and have since stabilized, according to data published recently in Nature. (The only two U.S. reactors built this century, at the Vogtle nuclear plant in Waynesboro, Ga., took 11 years and cost $35 billion.) China’s nuclear companies build only a handful of reactor types, and they do it over and over again. That allows developers to perfect the construction process and is “essential for scaling efficiently,” said Joy Jiang, an energy innovation analyst at the Breakthrough Institute, a pro-nuclear research organization. “It means you can streamline licensing and simplify your supply chain.”
Taiwan Is Not for Sale David Sacks/Foreign Affairs
When U.S. President Donald Trump meets with Chinese leader Xi Jinping in the coming weeks and months—likely starting next week at the Asia-Pacific Economic Cooperation forum in South Korea—the immediate focus will be on how to de-escalate the latest round of export restrictions and tariff threats that the United States and China have wielded against each other. But Trump and Xi are also likely to consider a more ambitious deal to reset bilateral relations, which would seek not only to stabilize economic ties but also to reevaluate geopolitical flash points—above all, Taiwan.
How U.S. Can Outcompete China Daniel Bob/RealClearWorld
Leadership in critical technologies such as artificial intelligence, quantum computing, semiconductors, robotics, advanced materials, biotechnology, and aerospace will determine who leads the world economically and strategically in the decades ahead. These technologies spur productivity gains, provide supply chain resilience, and shape military strength that sustain national security and prosperity.
China Against China Jonathan Czin/Foreign Affairs
Thirteen years after Xi Jinping ascended to the top of China’s leadership hierarchy, observers in Washington remain deeply confused about how to assess his rule. To some, Xi is the second coming of Mao, having accumulated near-total power and bent the state to his will; to others, Xi’s power is so tenuous that he is perpetually at risk of disgruntled elites ousting him in a coup.
Technology, Trade, Immigration, and Geopolitical Power
The Fiscal Impact of Immigration The Manhattan Institute
Using a methodology aligned with the congressional budget window, this report estimates the fiscal, economic, and population effects of immigrants by age, education, and category of admission. It updates previous Manhattan Institute research by incorporating more recent census data, more precise life-expectancy and fertility adjustments, economic and capital stock growth, and the fiscal effects of the descendants of immigrants. This report estimates fiscal impact in nominal dollars over a 10- and 30-year horizon. This report also updates and fixes several assumptions from previous research on the fiscal impact of immigrants, including the calculation method for interest on the debt and correctly adjusting tax credits for inflation. It uses an updated method for accounting for public-goods spending. Overall, the average new immigrant reduces the federal budget deficit and expands the economy, but this is not true of all categories of immigrants. Immigrants without college degrees receive more government benefits than they pay in taxes, even when we consider only their preretirement years. By contrast, immigrants who finished college or obtained an advanced degree contribute millions of dollars more in federal taxes than they receive in government benefits, and they save substantial amounts of interest on the debt while growing the economy.
AI Data Center Boom Threatens Trump’s Manufacturing Revival Bloomberg
The AI boom is coming to America’s industrial heartland, which speaks to how the economy is being transformed—even propped up—by a surge in investment in software, chipmaking and data centers. But the Lordstown plant’s reinvention raises the question: Is the exuberance around the technology that Trump has enthusiastically endorsed getting in the way of his goal of making America great again at churning out things like gasoline-powered cars, steel and furniture? Access to capital, power and people is key to the success of any construction or manufacturing project—and right now AI is gobbling up all three.
The Supply Chain Chokepoints in Quantum War on the Rocks
As quantum technologies move from proof-of-concept to deployment, supply chain resilience becomes just as critical as qubit coherence times. Resilience includes redundancy, domestic capacity, and timely alternatives when foreign manufacturers face disruptions or reprioritize their customers. Expertise and capital are key to driving technological innovation, but mean little if a company or research lab does not have access to the necessary inputs and reliable supply chains. Lack of access to one aspect of the supply chain can grind further research and development to a standstill, a red flag for investors and potential researchers. If the United States is to remain on the leading edge of quantum technologies, ensuring companies, government labs, and academic projects can consistently access critical supplies is a prerequisite.