Jeffrey Sachs： China's Strategic Vision Beats America's Political Theater

If you're scrambling for tickets to see one of the world's most influential economists speak in Hong Kong this Thursday, you're not alone. Professor Jeffrey Sachs of Columbia University—ranked among the top three most influential economists of our time by The Economist—will be holding court at the Hong Kong Convention and Exhibition Centre, and everyone from politicians to media folks wants in.

The Economist Who Isn't Afraid to Speak Truth to Power

For anyone keeping tabs on global affairs, you've probably stumbled across Sachs in countless online videos. As Director of Columbia's Center for Sustainable Development, this guy gets it—real progress only happens when countries actually cooperate instead of constantly trying to one-up each other. Otherwise, we're all heading for a cliff.

Don't let his unassuming appearance fool you. Sachs might look mild-mannered, but when he opens his mouth, he delivers razor-sharp analysis backed by decades of serious scholarship. He's not afraid to call out the powerful, even when they probably won't listen (or in Trump's case, might not even understand).

China's Long-Term Game vs America's Short-Term Fixes

Back in April at a diplomatic forum in Turkey, Sachs dropped some truth bombs that are worth paying attention to. After working around the globe for 40 years, he claims that China is becoming the world's most visionary country—and he's got the receipts to back it up.

Here's what caught my attention: Sachs argues that China's success isn't some happy accident or stroke of luck. It's the result of serious, long-term strategic thinking. Take their "Made in China 2025" plan from 2014—Sachs points out this wasn't about protectionism but rather "an investment in technology" and a genuine bid for global leadership. The results speak for themselves: "in eight of the 10 sectors that were identified there China succeeded in reaching the forefront."

And it doesn't stop there. China's 2017 AI strategy led to breakthroughs like DeepSeek—these aren't random innovations popping up overnight. They're the fruits of deliberate, strategic planning. As Sachs put it with genuine admiration: "so this is hard work that actually pays off. This is what every government should do."

Trump's Trade Wars: Political Theater, Not Economic Policy

But Sachs doesn't just praise China—he absolutely eviscerates America's approach under Trump. The protectionist policies? Pure political theater, according to this economic heavyweight. Sure, they might win some quick political points, but the long-term economic damage is devastating.

America's tariffs and trade wars, dressed up as "national security" measures against supposed foreign exploitation, are really just feeding nationalist anger—and that's never a substitute for actual economic policy. They certainly don't solve America's massive debts and budget problems.

Sachs gets straight to the point about America's real issues: "Here's where the US really failed over the last 40 years -- we let the inequalities widen and widen... the United States political system didn't address it at all for 40 years." His diagnosis is brutal but accurate: "Candidates of both political parties are paid by rich donors for their reelection campaigns and both parties then become the agents of tax cuts and not really addressing the social conditions."

The result? "You end up with a Donald Trump coming in and selling a pseudo explanation -- it's all China, and selling a pseudo remedy  -- a trade war." And here's perhaps the most damning quote about Trump's attitude toward America's debt crisis: "Donald Trump hasn't said it in public but apparently in private during his first term he was asked about the problem of the US national debt and his answer was 'I don't care because I'll be dead by the time it's a problem.'"

From Economic Doctor to Hong Kong Honors

Sachs isn't just a talking head—he's the real deal. This "economic doctor" has helped countries like Bolivia beat hyperinflation and guided numerous nations through successful economic transitions from planned to market economies. The irony? This lifelong champion of market economics now watches America retreat into protectionism, trashing the very global rules and order it once built.

Hong Kong clearly appreciates his work too. In 2023, the Chinese University of Hong Kong gave him an honorary Doctor of Social Science degree for his efforts in sustainable development and fighting economic inequality.

While Thursday's forum theme hasn't been officially announced yet, I'm personally hoping to hear Sachs dive deep into the relationship between planned and market economies—especially given how China's strategic approach seems to be running circles around America's reactive politics.

This is the kind of perspective we desperately need more of: clear-eyed analysis that cuts through the political noise to focus on what actually works.

Ocean

** 博客文章文責自負,不代表本公司立場 **

When an important policy is implemented, the market will react. Trump's tariff policy caused the US stock market to plummet for two consecutive days, losing about $640 million (nearly 50 trillion Hong Kong dollars) in market value. Federal Reserve Chairman Powell publicly admitted that the tariff shock exceeded expectations, and Paul Krugman, winner of the 2008 Nobel Prize in Economics, a well-known expert on international trade theory, even bluntly said that Trump was crazy. He pointed out that his tariff policy is not only a mistake in economic logic, but also likely to trigger a global trade war and cause far-reaching damage to the US and world economies.

Many people have pointed out that Trump's tariffs are similar to the tariff laws passed by the United States in 1930. The 1930 Act, which was notorious in the United States, was introduced in response to the Great Depression, but it caused an even greater economic crisis, a sharp contraction of American international trade, and an even worse Great Depression in the world.

There are two major differences between Trump's global tariff campaign and the 1930 tariff laws. First, the 1930 Tariff Act was a protectionist policy, raising tariffs on more than 20,000 imports, while Trump imposed so-called "reciprocal tariffs" on the world's trade rivals, regardless of what goods they had. Second, the Tariff Act of 1930 was passed by Congress; Trump, however, is on his own, Congress has no role at all, and Trump is doing whatever he wants.

Seeing Trump lightly holding a piece of cardboard at a press conference in the Rose Garden of the White House, saying that tariffs would be imposed on this country by 34% and tariffs on that country by 49%, many people sweated on their foreheads and couldn't help but worry about the return of the Great Depression.

Trump stressed that the tariffs are "reciprocal tariffs”, and he will impose the tariffs on imports into the United States the same level as the other countries impose on goods imported from the United States. However, the comments seen on the internet all believe that the data does not reflect the facts. Krugman bluntly said that the tariff data cited by Trump was grossly inaccurate. For example, he said, Trump claims that the European Union imposes 39 percent tariffs on American goods, but the actual average tax rate is only 1.7 percent. In addition, China's tariffs are exaggerated at 67 percent, but WTO data show an average tax rate of only 4.9 percent in 2024.

A financial reporter in the United States also found that Trump's tariff calculation was wrong. There is a free trade agreement between the United States and South Korea, but why is South Korea's tariff rate calculated at 50%? Naturally, he also noticed that the EU did not impose a 39% tariff on the United States at all, where did this figure come from?