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world1d ago
Former Treasury secretary says guardrails are needed to avoid US-China 'mutually assured economic disruption'
- Paulson says guardrails are needed to prevent mutual economic disruption between the U.S. and China amid rising tensions.
- He warned the U.S.-Chinese economic relationship is deeply integrated and could face disruption in any trade war.
- Paulson emphasized the need for mechanisms to manage trade and cross-border investment to prevent out-of-control escalation.
- The interview links economic risk to Iran tensions and Omani/UAE/China banking activity.
- Paulson described the bilateral relationship as the most consequential but highlighted a deep trust deficit.
- He warned that no country can afford a full-scale trade war right now.
- Paulson predicted the May U.S.-China meeting would stress stability over breakthroughs.
- Paulson noted cross-border investment could improve if guardrails are set.
- He urged ‘guardrails’ to prevent a broader economic disruption from policy missteps.
- The interview ties U.S. economic resilience to oil price volatility amid Iran tensions.
- Paulson urged ongoing dialogue as essential to avoid economic disruption.
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