Stephen Roach, a senior fellow at Yale University and former Chairman of Morgan Stanley Asia (COURTESY PHOTO)
In an interview with Beijing Review reporter Yu Shujun, Stephen Roach, a senior fellow at Yale University and former Chairman of Morgan Stanley Asia, warned against the negative repercussions of the trade war waged by U.S. President Donald Trump against China. Edited excerpts of his comments follow:
Unsupported by economic theory and fact-based reality, an escalation of Trump's tariffs poses grave threats to the U.S., China and the broader global economy.
Contrary to Trump's power play aimed at containing China, a saving-short America will quickly find consumer purchasing power under pressure, a major source of export growth curtailed, and diminished foreign buying of Treasuries.
Contrary to Trump's assertion that trade wars are easy to win, the U.S. will quickly come to realize that it could well be on the losing side of this confrontation with China.
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