Caixin OnlineOpinionCommentaries A Nightmare Scenario
08.20.2012 16:19

A Nightmare Scenario

As the U.S. and China enter difficult periods, the risk of a calamitous trade war increases
By Stephen S. Roach
 
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The United States and China are poised at the top of a very slippery slope. Creatures of two very different systems, they have much in common as they face critical tests of an increasingly contentious economic relationship. Both economies are at decisive transition points – old growth models have been taken to excess and must be replaced by rebalanced new models. Both governments are experiencing leadership changes, by different means, of course, but with equally important implications for the future.

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