Stephen Roach Warns of Disaster From Our 'Sinophobic' China Policy | Odd Lots

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One of the rare areas of bipartisan consensus in the US right now is taking a tough line on China. We saw President Trump put tariffs on Chinese goods, and the Biden administration has only added to them. A second Trump administration may add to them even further. Meanwhile, we're increasingly placing export restrictions on various technologies, such as semiconductors. Stephen Roach, the former chairman of Morgan Stanley Asia and now a fellow at Yale Law School, foresees disaster from this. He sees an explosion of Sinophobia, with policymakers misreading China and ushering us into a new Cold War, where the risk of some kind of accidental conflict will inevitably rise. In this episode of the podcast, we talk about the current tensions, how they compare to the US-Japan trade tensions in the 1980s, and how things could go bad.

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Roach is a good guy, representing the US corporate and financial interests, rather than a political hawk. But he doesn't perfectly understand China. If he did, he would appreciate china's ability of saying No to the western ideas is a sign of strength and not of weakness. If china has done all by what the west wanted, it would not have had its today.

kalipotmeng
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I’m no longer sure if consumption-heavy economy is healthy. Stimulating consumption can lead rampant consumerism. All developed countries have been damaged by consumerism.

Unvaccinatedpureblood
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Which country is prospering? Which country is collapsing? The country that incurs an additional debt of 10 billion dollars and a trade deficit of 3 billion dollars daily vs The country that has a trade surplus of 3 billion dollars daily.

PhilipWong