Salvatore Babones, Associate Professor University of Sydney joins me to discuss the question of the China U.S relationship. He suggests it is not what is being reported.
https://policy.bristoluniversitypress.co.uk/american-tianxia
Is The U.S. Vs China True? – With Salvatore Babones
– Again, a very interesting conversation although I don’t agree with everything Babones says.
– I agree that the “relationship” between the US and China is much more complicated that the news headlines suggest.
– A “slowing” chinese economy will also have a MAJOR (financial) impact on the US economy. E.g. China is/was the 2nd largest car(sales) market in the world and the 2nd largest market for air travel in the world. So, when China “stumbles” then that WILL have a MAJOR impact on world demand for e.g. oil & oil products.
– There are “tensions” in the South Chinese Sea. Based on my information I blame the US for deliberately increasing those tensions. In that regard I think that when the US economy “slows down”, “enters a recesssion” or worse then that would be actually very positive for “reducing tensions” in the South China Sea.
– To make the chinese yuan a reserve currency China will have to start running a Trade Deficit & a Current Account Deficit.