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AEI's weekly digest of top commentary and scholarship on the issues that matter most

Supply-Chain Vulnerabilities

Tracking China’s Global Investments

July 26, 2025

AEI’s China Global Investment Tracker is the only comprehensive dataset documenting China’s outbound investment and construction. In a new report on trends in these data, project leader Derek Scissors highlights the impact of tariffs and the United States’ broader, continuing failure to meet China’s economic challenge.

 

 

Even as American presidents have increasingly focused on China’s threat in the past 15 years, they have lacked the vision, constancy, and capacity to follow through with consistently effective policy. AEI Director of Social, Cultural, and Constitutional Studies Yuval Levin explains how the growth of the president’s domestic administrative and regulatory responsibilities has diminished the office’s authority and capacity to fulfill its core constitutional duties in foreign policy, national defense, and trade.

 

The rise of president-centric policymaking has been matched by a dramatic shift in constitutional litigation, as federal courts have been asked to immediately provide relief against the growing scope of executive action. In a new essay, Adam J. White reveals the deep gulf between contemporary judging and our founders’ vision of a judiciary defined by self-restraint and sober deliberation.

 

Quietly but firmly, the Trump administration is rolling back some of the Biden administration’s worst regulatory excesses. AEI Housing Center Codirectors Tobias Peter and Edward J. Pinto detail the Department of Housing and Urban Development’s recent decision to roll back flawed, race-based housing regulations.

 

The One Big Beautiful Bill Act provides the administration with the opportunity to implement much-needed reforms in the Supplemental Nutrition Assistance Program (SNAP). In a new report, Angela Rachidi and Thomas O’Rourke illustrate how SNAP’s caseload has become increasingly disconnected from its original purpose as a temporary economic stabilizer during downturns.

How Do Tax Incentives Influence Employers’ Decisions to Offer Retirement Benefits?

In recent years, policymakers have adopted many measures to incentivize employer-sponsored retirement plans (ESRPs). One such measure—implemented in the early 2000s and made more generous in recent years—allows some small employers to offset part of the cost of the ESRP through a tax credit. In a new National Bureau of Economic Research working paper, Sita Nataraj Slavov and coauthors find that only a fraction of eligible firms claim the credit. Providing critical insight into where the policies go wrong, the paper draws out friction points that prevent companies from taking advantage of the resource available to them.

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QUOTE OF THE WEEK

Setting a goal and then taking actions that undermine it has become a theme of Trump’s presidency. He wants to reduce the trade deficit, but his fiscal policies guarantee that it will increase. Trump wants to increase manufacturing employment, but . . . the tariffs he hopes will achieve that goal will actually reduce manufacturing employment by increasing the costs facing US manufacturers. Add to the list that by undermining the independence of the Fed, he would increase expected future inflation and the term premium—and, therefore, longer-term interest rates.

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