Global Finance editor at large Andrea Fiano's letter to you, the reader.
VOL. 37 NO. 6
How should corporates act in the current political climate between the US and China? This month, reporter Laurence Neville tries to answer this and related questions in a cover story opening with a little-known paradox: The US and China are showing record levels of bilateral trade—even as political strains grow. And yet, a deeper analysis shows a mixed picture: US agricultural exports to China are at record levels, but manufactured goods are stagnant and technology exports even declining. Yet if the two nations are unlikely to decouple entirely, we are surely experiencing a drastic change in their commercial relationships. There is no shortage of alternative solutions for individual companies seeking to diversify their supply chain or adjust to new regulations.
Also in this issue: an important conversation with Pierre Haren, CEO of Causality Link in Utah and widely recognized thought leader in artificial intelligence (AI). As our guest for monthly Global Salon, Haren offered insights on AI and ChatGPT that were both knowledgeable and frightening: “Even the authors of this technology do not fully understand how it works,” he told us, even though he expects major productivity increases to come from it soon.
What you will not find in this issue of the magazine is speculation about unpredictable events still unfolding as we go to press. The debate on the debt ceiling in the US, for example, is down to the last minute. While a US default is virtually unimaginable, political negotiations could impact policy—with global ramifications. The same applies to some key elections around the world. Guessing the outcomes would not be serious on our end—even if what happens in Washington with the debt ceiling of the US could have serious consequences for the US dollar, the financial markets and the global economy.