In Newsweek International, Mr. Stephen Roach argues:
This is a pivotal moment. China is moving to create a normal consumer market early in its development—far earlier than Japan and South Korea ever considered dropping the export-led model. Beijing is thus doing its part to address major global imbalances—between high Asian saving and high U.S. spending—at a time when Washington has yet to acknowledge its role: to restrain American consumption.
However, as China converts saving into consumption, it will have less surplus capital to fund America's shortfall—raising the odds for a hard landing for the U.S. economy. America needs to stop bashing China and get its own spending habits in balance.
To read more:
Comments