Economist and China hand Stephen Roach takes America the consumer and China the exporter to task for three decades of growth-at-any-cost policies. He cites imbalance as the price of codependency – the US sags with debt as China acquires foreign exchange assets. With government encouragement, China’s people must become consumers who buy goods and services from the US. If China reforms and the US does not, America will lose China’s cheap capital. The US Congress’s “China Gripe” – which blames China for the results of its own misguided policies – might start a disastrous trade war. Roach issues his wake-up call in a sanguine tone, though he could have given more details showing how well or badly China and its leaders are really doing. While always politically neutral, getAbstract recommends Roach’s informative, contemporary view to executives, investors, manufacturers and service providers with interests in China.
In this summary, you will learn
- How the US and China developed their now unsustainable codependency,
- What dangers await if they fail to reform their economic models, and
- What course of action can return both nations to real instead of “false prosperity.”
About the Author
Stephen Roach, former chairman of Morgan Stanley Asia, is a senior fellow at Yale University’s Jackson Institute for Global Affairs and a senior lecturer at the Yale School of Management.
Comment on this summary
5 years agovery important read. Information like that is quite disturbing, and I sometimes feel that people in power don't have a clue of what they are doing or where they are heading to...