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America, China and Silicon Supremacy Naval gazing—Russia eyeballs Ukraine Edit genes, but not like this Technology Quarterly: Zero carbon Our books of the year DECEMBER 1ST–7TH 201 Chip wars America,Chinaandsiliconsupremacy MAKE YOUR TEAM BETTER. MAKE YOUR FIRM BETTER. MAKE THE INVESTMENT WORLD BETTER. HIRE A CFA® CHARTERHOLDER. By passing one of the most rigorous series of exams in the investment management industry, CFA charterholders have proven they have the skills and commitment to measure up to the needs of their clients and the demands of a changing world. Charterholders also have the ethical foundation to put their clients first and make the right decisions for the long term, not just today. When choosing the right person for your team, you want the best. You want a CFA charterholder. Get started at letsmeasureup.org © 2018 CFA Institute. All rights reserved. Contents The Economist December 1st 2018 5 The world this week United States 7 A round-up of political 21 The housing wobble and business news 22 Assessing the climate 24 Puerto Rico’s recovery Leaders 24 Asset forfeiture 9 Trade and technology Chip wars 25 The Illinois machine 26 Lexington Native 10 Mexico’s new president AMLO’s errors Americans in Congress 10 Global warming The Americas The great inaction 27 The power of AMLO 12 Renault-Nissan- Mitsubishi 28 Brazil’s culture war Unholy alliance 30 Bello A memoir of On the cover 14 Gene editing Argentina’s madness America cannot aford to The baby crisperer ignore China’s semiconductor ambitions. It cannot easily Letters tame them, either: leader, On opportunity zones, Asia page 9. The chip industry 16 accents, buildings, India, 31 Elections in Taiwan shows the power of Europe, DNA, Napoleon globalisation. Superpower 32 Banyan Singapore’s next politics may yet unravel things, prime minister page 18 Briefing 33 Counter-terrorism in India 18 Semiconductors • Russia eyeballs Ukraine Two 33 Indonesia’s likely veep The chips are down navies collide in the Sea of Azov, 34 Australia’s hapless page 44 conservatives Technology Quarterly: • Edit genes, but not like this Towards zero carbon China A Chinese scientist claims to Conquering CO 2 35 Curbing tax evasion have changed the genomes of After page 42 babies: leader, page 14. It would 36 State media abroad be the first birth of genetically 38 Chaguan Gloss-free modified children, page 70 history • Technology Quarterly: Zero carbon What would it take to get carbon dioxide out of the global economy? Lots of clean Middle East & Africa electricity and a revolutionary 39 Angola’s Deng Xiaoping? shift towards the lightest gas, after page 42. Climate change is 40 Ebola and Congo’s rebels a problem of unprecedented 41 Talks on Western Sahara scope and intractability. Can it 42 Qatar and the World Cup be overcome? Leader, page 10 42 Saving the Sea of Galilee • Our books of the year The best books of 2018 were about corruption, blood, slavery, Chaguan A remarkable survivalism, espionage and a museum network offers a drifting second-world-war chance to remember, if veteran, page 74 not judge, China’s dark past, page 38 1 Contents continues overleaf 6 Contents The Economist December 1st 2018 Europe Finance & economics 44 Russia and Ukraine clash 63 Banks’ Brexit plans 45 The race to succeed 64 Brexit and clearing-houses Angela Merkel 65 Mortgages in America 46 France’s protesting 65 Bitcoin’s collapse motorists 66 Growing green finance 47 #MeToo in Turkey 66 Pubs in Ireland 47 Let Polish pollsters poll 67 Buttonwood Corporate 48 Charlemagne Spain, bonds Franco and memory 68 Free exchange Paul Volcker’s memoir Britain 49 Religious schools take off Science & technology 50 The knights who say Brexit 70 Gene-edited babies 51 Bagehot Don’t write off 71 InSight lands on Mars the prime minister yet 71 Spiders that suckle young 72 Viruses, sunshine and antibiotic resistance International 73 The genetics of ADHD 52 Indigenous peoples 73 Phantoms and prostheses 53 Brazilian Indians Books & arts 54 Why Maori do better than Aboriginals 74 Books of the year 77 Books by our writers Business 55 Taming Glencore 56 The scramble for cobalt Economic & financial indicators 57 Polish state-owned enterprises 80 Statistics on 42 economies 58 Bartleby Working for a Graphic detail purpose 81 European populists agree on bashing elites and little else 59 GM closes plants Post-Soviet farming 60 Obituary Schumpeter A merger 61 82 Raed Fares, a tireless Syrian activist proposal Subscription service For our full range of subscription ofers, including digital only or print and digital combined, visit: Economist.com/ofers Volume 429 Number 9120 Published since September 1843 You can also subscribe by mail, telephone or email: One-year print-only subscription (51 issues): Please to take part in “a severe contest between North America intelligence, which presses forward, The Economist Subscription Center, United States....................................US $158.25 (plus tax) and an unworthy, timid ignorance P.O. Box 46978, St. Louis, MO 63146-6978 Canada................................................CA $158.25 (plus tax) obstructing our progress.” Telephone: +1 800 456 6086 Latin America.......................................US $289 (plus tax) Email: [email protected] Editorial o ces in London and also: PEFC certified Amsterdam, Beijing, Berlin, Brussels, Cairo, Latin America & Mexico This copy of The Economist Chicago, Johannesburg, Madrid, Mexico City, The Economist Subscription Center, is printed on paper sourced Moscow, Mumbai, New Delhi, New York, Paris, P.O.Box 46979, St. Louis, MO 63146-6979 from sustainably managed San Francisco, São Paulo, Seoul, Shanghai, Telephone: +1 636 449 5702 forests certified to PEFC Singapore, Tokyo, Washington DC Email: [email protected] PEFC/29-31-58 www.pefc.org © 2018 The Economist Newspaper Limited. All rights reserved. Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of The Economist Newspaper Limited. The Economist (ISSN 0013-0613) is published every week, except for a year-end double issue, by The Economist Newspaper Limited, 750 3rd Avenue, 5th Floor New York, NY 10017. The Economist is a registered trademark of The Economist Newspaper Limited. Periodicals postage paid at New York, NY and additional mailing oices. Postmaster: Send address changes to The Economist, P.O. Box 46978, St. Louis, MO 63146-6978, USA. Canada Post publications mail (Canadian distribution) sales agreement no. 40012331. Return undeliverable Canadian addresses to The Economist, PO Box 7258 STN A, Toronto, ON M5W 1X9. GST R123236267. Printed by Quad/Graphics, Hartford, WI. 53027 The world this week Politics The Economist December 1st 2018 7 dent, Juan Orlando Hernández, Freeman Mbowe, the head of with smuggling cocaine into Returning to the mean the opposition in Tanzania, America. He denies it. Presi- Taiwan’s ruling Democratic was arrested for jumping bail. dent Hernández said that “no Progressive Party was ham- His original charges were for one is above the law.” mered in local elections, losing joining a protest. more than half the cities and The rate of deforestation in the counties it had held. The A fragile truce in Syria was Brazilian Amazon rose by Kuomintang party (kmt), threatened after the regime of 13.7% in the year to July 2018, to which lost power to the dpp in Bashar al-Assad, and Russia, an its fastest pace since 2008. 2016 and is more friendly to ally, accused rebels of launch- Some 7,900 square kilometres China, benefited from a surge ing chemical weapons from (3,000 square miles) was in support. Tsai Ing-wen, who their remaining stronghold in Ukraine imposed martial law cleared, mainly by loggers. refuses to affirm the main- Idlib province. Russia respond- for 30 days after Russia fired That is still 72% less than the land’s formula that there is ed to the attack, which the on and seized three of its ves- deforestation that took place in only “one China”,resigned as rebels deny, with air strikes. sels near the Sea of Azov. Since 2004. Brazil’s president-elect, the dpp’s leader. She remains grabbing Crimea, a big chunk Jair Bolsonaro, wants to weak- president, but the losses are a Binyamin Netanyahu, Israel’s of Ukrainian territory, Russia en protection of the rainforest. blow to her authority. prime minister, said he plans has been throttling Ukrainian to visit Chad to re-establish shipping through a strait it America’s Treasury Depart- diplomatic ties more than four now controls. A new Russian ment imposed sanctions on decades after the majority- bridge over the strait is, by an Rosario Murillo, who is both Muslim country cut off rela- amazing coincidence, too low Nicaragua’s vice-president tions with the Jewish state. Mr for big ships to sail under. and the wife of its left-wing Netanyahu’s statement came president, Daniel Ortega. She as Idriss Déby, the president of The gilets jaunes (yellow jack- has influence over the ruling Chad, was visiting Israel. ets), motorists protesting party’s youth wing and the against higher fuel taxes, police, which have abused Muhammad bin Salman, the blocked more French roads. human rights, the Treasury crown prince of Saudi Arabia, Some called for President alleges. The sanctions bar was met by hundreds of prot- Emmanuel Macron to resign. Americans from dealing with esters on a visit to Tunisia. Ms Murillo. Taiwanese voters also ap- They were upset about the Britain’s Treasury estimated proved three initiatives to curb murder of Jamal Khashoggi, a that gdp will be 3.9% smaller in gay rights. Taiwan’s constitu- journalist who was strangled 15 years’ time than it would A familiar face tional court has ruled that the and dismembered in a Saudi otherwise have been if the After their victory in the mid- government must allow some consulate in Turkey.
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