Odd Lots Stephen Roach Warns of Disaster From Our 'Sinophobic' China Policy
19 snips
Jul 15, 2024 Stephen Roach, a senior fellow at Yale Law School and former chairman of Morgan Stanley Asia, shares his concerns over rising 'Sinophobia' in U.S. policy towards China. He warns that aggressive tariffs and export restrictions could lead to a new Cold War. Roach draws parallels between current tensions and the U.S.-Japan trade conflicts of the 1980s, emphasizing the need for nuanced dialogue to avoid conflict. He also highlights the dangers of misunderstanding China's economic strategies and transitioning from export-led growth.
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Boombox Smashing
- US congressmen smashed a Japanese boombox in the 1980s.
- This symbolized US anxieties about Japan's economic rise and dominance in consumer electronics.
Japanese Auto Production Shift
- US anxieties about Japanese car imports led to voluntary export restraints.
- However, Japan shifted production to the US, building factories and employing American workers.
Misunderstanding Trade Dynamics
- In the 1980s, the US viewed Japan's economic success as a threat, despite their security alliance.
- This misunderstanding of trade dynamics stemmed from focusing on bilateral trade deficits rather than domestic savings.
