US Coronavirus Conflict With China: The Hill

COVID-19, a threat to social and economic activity, requires a global solution, explain Stephen Roach and Daniel Arbess. Scapegoating is “stressing the U.S.-China relationship, inhibiting collaboration and enabling China to fill the global leadership void,” the two write. Collaborative research and ending the trade war, especially on medical supplies, could save US lives. China’s strict containment approach reduced infections and other nations try the same. Societies must be willing to undertake economic sacrifices to save lives and “any snapback – the widely hoped-for V-shaped rebound – is more dependent on COVID-19 containment than on the ‘big bazooka’ of massive monetary and fiscal stimulus that worked so effectively in dealing with the financial crisis of 2008-09.” Rapid return to normal routines before protective medical equipment is available ensures economic disaster along with employment, liquidation and solvency troubles. Distributing funds to consumers and businesses adds to the debt burden for younger generations. Foreign investors could lose interest in Treasuris as investments, and interest rates could rise, constraining US ambitions for years to come. The writers conclude, “Great powers are great when they work together — not when they attempt to belittle and blame the other.” – YaleGlobal