Renowned American economist Jeffrey Sachs attributed the escalating tensions between the U.S. and China to the U.S.’s anxiety over losing its global dominance.
What Happened: In a recent interview, Sachs criticized the U.S.’s defensive reaction to China’s success, which he believes has led to increased global tensions. He pointed out that the US’s attempts to “contain” China, initiated around 2015, have been counterproductive, South China Morning Post reported on Monday.
These containment strategies included trade agreements designed to exclude China, increased export bans on high-tech products, heightened trade barriers, militarization of the South China Sea, and opposition to Chinese initiatives like the Belt and Road Initiative.
“I believe that every one of these approaches is a failure. They do not "contain" China, but they raise tensions, lower economic well-being and global economic efficiency, divide the world economy, and bring us close to war,” Sachs said.
He warns that the U.S.’s inability to accept China’s success could lead to a dangerous conflict in Asia.
Why It Matters: These views come in the wake of recent events that have strained U.S.-China relations. In June, the U.S. Ambassador to China, Nicholas Burns, accused Beijing of sabotaging diplomatic relations between the two nations. He cited instances of intimidation of citizens attending U.S.-organized events in China, increased restrictions on the embassy's social media posts, and the stirring up of anti-American sentiment.
The U.S. has been increasing restrictions on Chinese firms, EVs and the country’s access to AI technology, drawing sharp rebuke from Beijing.
In July, Chinese President Xi Jinping, during a meeting with Hungary's Prime Minister, Viktor Orbán, called on world powers to assist Russia and Ukraine in resuming direct dialogue and negotiations, indirectly criticizing the U.S.’s role in global affairs.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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