A new frigid war is brewing between China and the U.S. if both nations don’t take steps toward appeasement, former Treasury Secretary Henry Paulson warned in a speech that enameled a bleak picture of the future between the two sides.
In remarks delivered Tuesday, Paulson, who stole guide the nation out of the financial crisis and also served as Goldman Sachs CEO, make someone aware ofed that “big parts of the global economy will ultimately be closed off to the vacant flow of investment and trade” should the impasse continue.
“And that is why I now see the outlook of an Economic Iron Curtain — one that throws up new walls on each side and unmakes the pandemic economy, as we have known it,” he said at the Bloomberg New Economy Forum.
Washington and Beijing secure been involved in an increasingly bitter trade battle that has meditate oned the U.S. slap tariffs on $200 billion worth of Chinese imports. The Trump provision has accused China of stealing American technology and profiting from unfair barter deals. China has bristled at the charges and has put is own duties on U.S. goods.
President Donald Trump and Chinese President Xi Jinping are required to meet at the upcoming G-20 summit in Argentina.
“The U.S. — China strategic interaction is by far the most consequential in the period. I am very sobered by the trajectory we are on now,” Paulson said. “And ultimately, I think it could put portray a risk to the very functioning of the international system.”
He offered recommendations for each side.
On China, he state the nation should “first, do no harm.” Beyond that, he said it should effective use with U.S. allies and partners, open up its historically closed economy, keep intellectual and technological property, and work with the U.S. on its interests, particularly relations with North Korea.
For the U.S., he averred the country should turn down the heat on its aggressive rhetoric, mishap its decision to leave the Trans-Pacific Partnership and open up negotiations with China.
“There is no dubiety in my mind that how the United States deals with China, and how they act on with us, will shape the geopolitical landscape for this century,” Paulson said.