The United States needs to face up to its own imbalances rather than engage in more China bashing over trade, according to renowned economist and head of Morgan Stanley Asia Stephen Roach.
"The West, especially the United States, needs to take a long hard look in the mirror and face up to its own imbalances," Roach writes in the Business Times.
“Hypocrisy is not a recipe for global statesmanship."
"There is good reason to believe that China ... is about to take dramatic steps in rebalancing its domestic economy in a fashion that would provide a sustained and meaningful reduction in its current account surplus."
Roach fears that, as the U.S. congress and the White House look toward the 2010 mid-term elections, Washington could well up the ante on China bashing by moving from a rhetorical assault to widespread trade sanctions.
He points out that the U.S. must also be held accountable for global economic imbalances, and that meaningful progress on global rebalancing could not occur without progress by both China and the United States — and China has a more optimistic prospect of achieving rebalancing.
Eurasia Group, a political risk consulting firm, recently ranked U.S.-China relations as the top global risk for 2010, The Business Standard reports.
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