Domestic and Global Forces in the Evolving U.S. - China Relationship
For most of the past 30 years, both the United States and China have experienced impressive but unbalanced growth. For the U.S., this has been the result of over-consumption and under-saving by households and generally large government budget deficits. For China, it has been the result of frenetic export- and investment-led growth. However, forces are now shifting and each country must overcome key domestic challenges to transition to more stable growth. Professor Wescott offers an in-depth analysis of the factors which may change the rules of the game – US energy boom, Chinese rising labour costs, stronger demand for services in China.
These factors will likely have powerful effects on trade balances and capital flows.