"Who Will Win the New Trade War?" - An article in the Financial Times

Published 5 hours ago

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In our Wednesday press review, we look at an article about the trade war between major powers, another on how investors are coping with inflation and economic stagnation, and a final article on the obsession with improving health among Generation Z.

We begin our roundup with an article in the Financial Times titled "Who Will Win the New Trade War?" by Martin Wolf.

The writer argues that major powers seek to enhance economic security, control supply chains, and reduce dependence on foreign countries.

He compares the size of the US and Chinese economies, stating that "the size of China's economy is close to that of the United States."

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He explains that "in 2025, China’s total national savings reached 43 percent of GDP, compared to only 17 percent in the United States."

He adds: "True, the US is more self-sufficient in energy, but China has a much larger workforce and significantly higher investable savings."

He says China benefits the most from the "new economic protectionism" model, as it has a vast industrial base, controls important parts of global supply chains such as batteries, rare minerals, and solar panels, and possesses high savings and investment rates that enable it to finance industry and expansion.

He points out that China has weaknesses, including its reliance on oil and gas imports, slowing economic growth, and weak domestic consumption.

What impact does the trade war between the US and China have on the global economy?

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The writer suggests that economic power should also be measured by self-sufficiency, control of vital technologies, ability to withstand crises, and possession of supply chains that others find hard to do without, not just by GDP size.

He concludes with the question 'Who will win?', hinting that victory will go not to those with the largest trade surplus, but to those who achieve flexibility and reduce dependence on adversaries.

How have investors learned to live with inflation?

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We move on to an article in The Economist titled 'How have investors learned to live with inflation?'

The article discusses the shift from worrying about an economic 'landing' to coexisting with an economy that does not land at all, despite persistent inflation.

It says that excessive tightening of monetary policy will lead to a decline in productive activity while inflation remains high, which could lead to a 'hard landing.' But if managed wisely, a 'soft landing' could be achieved, where inflation declines without the economy entering a contraction.

He asserts that 'anyone proposing a no-landing scenario, where both inflation and growth continue to rise, will face outright rejection from central bankers.'

The article discusses lessons learned from the past five years of investing under high inflation and says that 'investing in real assets and income sources is worth the effort.'

It adds that 'stocks remain investments in real earnings that rise with other prices, protecting their value from inflationary erosion.'

The second lesson, according to The Economist, is that 'inflation subjects even assets that outperform it in the long run to sharp volatility.'

In conclusion, it says that 'the no-landing world is less stable, because high inflation not only reduces the value of currencies but also drives investors and consumers to act erratically, creating their own volatility.'

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"The Most Health-Obsessed"

We conclude our roundup with an article in The Telegraph titled 'My Generation Is the Most Health-Obsessed Ever, and It Makes Us All Miserable,' by Lara Brown.

The writer criticizes Generation Z's obsession with improving health, by discussing conflicting scientific studies about 'coffee,' including studies saying it reduces heart disease risk, others saying it raises blood pressure, and other research determining the ideal time to drink it.

Lara Brown shows that health advice constantly changes, and what is considered 'scientific truth' today may change tomorrow.

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The writer attacks those who organize every minute of their day in an attempt to prolong their lives, and asks, 'What if you spend your whole life trying not to die, and then you have a random accident?' The point being that excessive pursuit of longevity may make you forget to live.

She also notes that 'advice changes as new research emerges, and nutritionists themselves change their opinions; for example, they used to say eggs are harmful - then, as they say now, they are beneficial, and they also said wine is harmful - then: it might have benefits, and chocolate becomes a 'superfood' under certain conditions.'

She says: 'Nutritionists do not agree on what is beneficial and what is harmful. Their findings seem to change every five years. Even if you follow the correct "protocol," it is nearly impossible to avoid the health risks of modern life.'

She also warns that not everything can be controlled, as there are 'microplastics in water, chemicals in cookware, and hormone-disrupting substances in paper receipts.'

Lara Brown believes that health obsession has not made people healthier. She notes that Gen Z drinks less alcohol, exercises, uses smartwatches, and eats 'healthy' foods, yet some data indicate rising rates of several types of cancer among younger generations.

The writer points out that mental health is no less important than physical health, as simply believing that one is living an unhealthy life can make one actually feel 'sick.'

She concludes by stating that 'pleasure is the only goal one should live for.'

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