In just a few days, US–China relations have taken a troubling turn. How did we go from the goodwill of the London and Madrid bilaterals to the current war of words, the threats and the counter-threats? Is this simply pre-APEC brinkmanship, or the start of a more fundamental breakdown in relations between Washington and Beijing? And how great are the risks of a miscalculation that spills over into the global economy?
The Weekly Briefing from Capital Economics, Group Chief Economist Neil Shearing and Head of China Economics Julian Evans-Pritchard discuss the past, present and future of US–China relations. They explore key questions, including:
• What’s driving Beijing’s new controls on rare earths, and whether the government could reverse course
• What’s wrong with US perceptions of China’s economic health – and why those perceptions could prove dangerous
• How the global economy will need to keep adjusting to a fracturing US-China relationship
Analysis referenced in this episode
The fracturing of the Global Economy
US may revive plans to curb financial ties with China
Global Economics Outlook: US leads, others lag, in uneven global economy
CAP: Economy holding up, but growth remains weak
China’s push for innovation is not lifting productivity
