Day: February 7, 2023

The escalating tensions between the US and China are the product of false narratives promulgated by the leaders of both governments, with each nation blaming the other for its economic problems. The US blames China for its huge trade deficit, when the real cause is the perilously low rate of savings among American consumers; China blames the US for trying to “contain” the growing superpower, but the real issue is the failure of the Chinese middle class to provide the consumption demand needed by China’s industry. The US and China should take steps to increase collaboration and face up to the root internal causes of their economic issues.