Romer: Entered New Phase of Contention in Trade

The video discusses the decline in world trade as a percentage of GDP since 2009, highlighting the shared concerns of the US and China regarding trade relations. It emphasizes the misunderstandings about the WTO system and the need for countries to focus on internal demand. The US perception of unfair trade deals and the differences in economic models between the US and China are also explored, particularly regarding state-owned firms and subsidies.

What misunderstandings exist regarding the WTO system and its agreements?

How does the Chinese government's approach to its economy differ from the Western perception?