US-China Relations Updates

Please see original Youtube here: https://www.youtube.com/watch?v=9_TEQoLfO5k

The Alternative Investment Management Summit (AIM Summit) is an exclusive gathering connecting regional investors and managers in the world of alternatives (Hedge Funds, Private Debt, Private Equity, Venture Capital, Cryptocurrency) with global industry leaders including Mark Mobius, Nouriel Roubini, Mike Novogratz, Anthony Scaramucci, Dan Morehead, Tim Draper, and Zachary Cefaratti.

Speakers:

Stephen Roach – Senior Fellow, Paul Tsai China Center of the Yale Law School, Former Chief Economist and Asia Chairman, Morgan Stanley

Charles Myers – Chairman and Founder, Signum Global Advisors

Moderator Dani Burger – TV Anchor, Bloomberg

I like the way Mr. Roach presented his idea: please THINK!

Mr. Myers’s conclusion is very dangerous: the USA will send military power to support Taiwan….really? with the DF-27 news couple of days ago, there is no way the US will send Aircraft to intervene Taiwan crisis.

What are some potential benefits of economic decoupling?

While economic decoupling between countries like the US and China has potential drawbacks, there are some potential benefits as well. Here are a few:

1. National security: Economic decoupling could help reduce the risks of national security threats from other countries. By reducing economic interdependence, governments may be less vulnerable to cyber-attacks, intellectual property theft, or other forms of economic espionage.
2. Job creation: Economic decoupling could create new jobs in some sectors, as companies may reshore production or relocate to countries with lower labor costs. This could help address concerns about job losses due to trade and outsourcing.
3. Promoting domestic industries: Economic decoupling could help promote the growth of domestic industries, as companies may be incentivized to invest in research and development and to pursue new markets domestically.
4. Increasing bargaining power: Economic decoupling could increase a country’s bargaining power in trade negotiations, as it would reduce its dependence on imports from other countries. This could give countries more leverage to negotiate better trade deals.
5. Reducing economic imbalances: Economic decoupling could help reduce trade imbalances between countries, as it would reduce the flow of goods and services between them. This could help address concerns about unfair trade practices and currency manipulation.

Overall, the potential benefits of economic decoupling must be weighed against the potential costs, and policymakers must carefully consider the broader implications for their own economies as well as the global economy.

What are some of the arguments against economic decoupling?

There are several arguments against economic decoupling between countries like the US and China:

1. Economic costs: Economic decoupling could have significant economic costs for both countries, as it would disrupt established supply chains and reduce trade and investment flows. This could result in higher prices for consumers, lower economic growth, and job losses.
2. Global economic impact: Economic decoupling could have a negative impact on the global economy, as both the US and China are major players in the global trading system. Reduced trade and investment flows between these two countries could lead to a broader slowdown in global trade and economic growth.
3. Political tensions: Economic decoupling could exacerbate political tensions between the US and China, leading to a further escalation of trade and other conflicts. This could also increase the risk of military conflict, as economic interdependence can serve as a stabilizing force in international relations.
4. Negative impact on innovation: Economic decoupling could lead to a reduction in innovation, as companies may have less access to technology and expertise from other countries. This could ultimately harm the long-term competitiveness of both the US and China.
5. Environmental concerns: Economic decoupling could lead to an increase in environmental degradation, as companies may relocate to countries with weaker environmental regulations in order to maintain access to cheaper inputs and markets.

Therefor, economic decoupling is a complex issue with both potential benefits and drawbacks. Policymakers must carefully weigh the costs and benefits of economic decoupling before making any decisions, taking into account the potential impacts on their own economies as well as the global economy.