Unbalanced: The Codependency of America and China Author: Stephen Roach | Language: English | ISBN:
B00HVF5A1Q | Format: PDF
Unbalanced: The Codependency of America and China Description
The Chinese and U.S. economies have been locked in an uncomfortable embrace since the late 1970s. Although the relationship initially arose out of mutual benefits, in recent years it has taken on the trappings of an unstable codependence, with the two largest economies in the world losing their sense of self, increasing the risk of their turning on one another in a destructive fashion.
In
Unbalanced: The Codependency of America and China Stephen Roach, senior fellow at Yale University and former chairman of Morgan Stanley Asia, lays bare the pitfalls of the current China-U.S. economic relationship. He highlights the conflicts at the center of current tensions, including disputes over trade policies and intellectual property rights, sharp contrasts in leadership styles, the role of the Internet, the recent dispute over cyberhacking, and more.
A firsthand witness to the Asian financial crisis of the late 1990s, Roach likely knows more about the U.S.-China economic relationship than any other Westerner. Here he discusses:
- File Size: 615 KB
- Print Length: 345 pages
- Page Numbers Source ISBN: 0300187173
- Publisher: Yale University Press (January 15, 2014)
- Sold by: Amazon Digital Services, Inc.
- Language: English
- ASIN: B00HVF5A1Q
- Text-to-Speech: Enabled
X-Ray:
- Lending: Not Enabled
- Amazon Best Sellers Rank: #58,312 Paid in Kindle Store (See Top 100 Paid in Kindle Store)
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- #2
in Kindle Store > Kindle eBooks > Business & Money > International > Exports & Imports - #11
in Books > Politics & Social Sciences > Politics & Government > International & World Politics > Trades & Tariffs - #13
in Kindle Store > Kindle eBooks > Business & Money > International > Economics
For decades the U.S. and China relied on a 'marriage of convenience' that guaranteed China a huge market for exports, while American consumers received a cornucopia of inexpensive products and a buyer of its debt. Roach basically contends that it's time for the two nations to switch identities - more savings and less consumption in the U.S., less savings and more consumptionin China.
The new China is here, yet we're fixated on the old China. China is now moving to a more balanced consumer-led growth model via services-led job growth (China's services sector overtook the combined shares of manufacturing and construction as the economy's largest segment in 2013), urbanization-driven income leveraging, and a stronger social-safety net. Services generate about 30% more jobs/output unit than do manufacturing and construction, allowing China to meet its labor absorption and social stability goals with economic growth of only 7-8%.
China now has the smallest services sector of any major economy, and Roach sees it possibly increasing by about $12 trillion by 2015, providing an opportunity for the U.S. Roach suggests pursuing that opportunity rather than continued Chinese currency bashing - reality is we had deficits with 102 nations in 2012 which Roach contends is the result of a U.S. savings gap. Besides, the renminbi has risen 35% since 7/2005 and its current account surplus is less than 3% of GDP. Roach would also like to see cyberattack issues raised to high-priority status.
As for rebalancing - China needs to save less and consume more, and the U.S. the opposite. Phasing out the one-child policy and reforming the residential permit system (hukou) are early steps; another is earmarking 30% of China's SOE profits for funding its safety net programs.
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