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a. Do you think China is pursuing an economic policy that can be characterized as neo-mercantilist? 

b. What should the United States, and other countries, do about this?

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Solution Preview

One way or another, government of China highly controls the import and export through its trade policies. It encourages the exports while discouraging the imports, which allows it to achieve a trade surplus. To be specific, import substitution in the area of steel, paper and aluminum has discouraged import by increase in domestic production. The 

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