China is starting to feel the sting of international isolation. On Wednesday, the U.S. Treasury outlined plans to implement a stringent review system on foreign investment in 27 high-tech sectors deemed critical to national security, from telecommunications to aviation to biotech. The main target? China, of course. Beijing thinks the trade war with the U.S. is largely manageable from its end – so long as other countries don’t join the offensive – and politically unsustainable from the U.S. side. But the “tech war” is perhaps more problematic for Beijing. Not only does it have bipartisan support in the U.S., but other major economies are starting to limit Chinese investment in high-tech sectors as well. This strikes at the heart of China’s plans to modernize its economy and find a path to sustainable growth. Curiously, the South China Morning Post reported Thursday that Beijing may try to join the revived 11-nation (and soon to grow) Trans-Pacific Partnership, which focuses
Daily Memo: Pressure on China, Sanctions Relief in North Korea
All the news worth knowing today.