Opinion
The high price of decoupling China
Even if the confrontation does not turn hot, slow growth, high inflation and a weaker US dollar will be the result of Washington and Beijing downgrading their economic ties.
Stephen RoachAsia watcherFive years into a once-unthinkable trade war with China, US Treasury Secretary Janet Yellen chose her words carefully on April 20. In a wide-ranging speech, she reversed the terms of US engagement with China, prioritising national-security concerns over economic considerations.
That formally ended a 40-year emphasis on economics and trade as the anchor to the world’s most important bilateral relationship. Yellen’s stance on security was almost confrontational: “We will not compromise on these concerns, even when they force trade-offs with our economic interests.”
Project Syndicate
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