The rapid financing of the AI boom through massive corporate debt issuance is creating significant stress on global financial markets. This influx of private capital forces competition with government Treasury bonds, as AI companies offer higher yields than equivalent sovereign debt, thereby pushing up long-term interest rates. While this signals strong investment demand for AI, it raises concerns about systemic risk and the potential destabilization of core bond markets. Policymakers must navigate the tension between fueling critical technological growth and maintaining stable public borrowing costs to prevent a financial crisis.
China’s Weaponization of Trade: Resistance Through Collective Resilience
English Summary
The article argues that Beijing systematically uses its immense market power to engage in economic coercion, forcing international actors to align with Chinese policy preferences. Evidence highlights China's extensive use of non-tariff barriers and trade restrictions against both governments and private entities since 1997. The authors conclude that because no single nation can effectively deter this pressure, the strategic response must be 'collective resilience.' Policymakers should coordinate by identifying sectors where China is vulnerable—lacking substitutes for key inputs—and threatening reciprocal economic pressure to build a unified deterrent.
中文摘要
本文論述北京系統性地利用其巨大的市場力量從事經濟脅迫，迫使國際參與者必須配合中國的政策偏好。證據指出，自1997年以來，中國對政府和私營實體均廣泛使用非關稅壁壘和貿易限制。作者們結論認為，由於沒有單一國家能夠有效阻止此類壓力，因此戰略回應必須是「集體韌性」。政策制定者應透過協調行動，找出中國在哪些關鍵輸入要素上存在弱點（缺乏替代品），並威脅進行對等經濟壓力，從而建立統一的威懾力量。
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