US-China trade could see ‘two more years of serious tension,’ says economist
Derek Scissors, an economist at the American Enterprise Institute, believes it could take as long as two more years to iron out tensions in the US-China trade relationship. “What the US wants is …very serious changes in Chinese trade behavior and maybe domestic economic behavior,” Scissors told CNBC, adding that he was unsure if there was an “off ramp” for the recent conflict. Another economist, Yale University’s Stephen Roach, echoed that sentiment and said he anticipated a “significant escalation” in the fight with China over tariffs. Roach believes the real problem at the heart of the US trade deficit is Americans’ low savings rate. “When you don’t save and you want to grow, you import surplus savings from abroad, you run massive current account and trade deficits to attract the capital,” Roach said.
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