- BusinessChinaSpecial Stories
This article for Drishtikone by Peter Navarro, the author of "The Coming China Wars" gives a flavor of the detailed analysis of the effect of China on the world at large in the coming decades in his book. I strongly recommend the book to read about each "War" in detail!
The story is far larger than any one of us or any single country.
The pandemonium was triggered by a Chinese government announcement that it would no longer finance the mounting budget and trade deficits of a “profligate United States” that “refuses to live within its means” and that “insists on scapegoating China for its own internal economic problems.” Nor would China continue to try to prop up “an increasingly worthless dollar.”
As the Chinese began dumping U.S. assets on Wall Street, both stock and bond prices plummeted. The panic soon spread to other exchanges around the world as gold soared to more than $1,000 an ounce and fear of a global depression deepened.
China’s actions have been widely interpreted as harsh retaliation for U.S. congressional passage of stiff protectionist tariffs on a wide range of manufactured goods. With the presidential election less than a month away, both houses of Congress up for electoral grabs, and the U.S. economy stuck in reverse, Republicans and Democrats alike are pushing additional legislation addressing everything from the growing trade in Chinese counterfeit goods, illegal drugs, and ballistic missiles to the international spillover from China’s mounting environmental pollution.