China Threatens Use of Treasury Debt as WMD
Second, the world’s largest economies — the United States, China, the European Union — must improve coordination on macroeconomic policies, as well as regulation and trade, and resist the temptation of protectionism.
Third, balance must be restored: between the financial sector and the real economy; between domestic and overseas demand; between developed and developing countries. China has moved to encourage domestic consumption instead of relying solely on exports.
Frictions are hardly avoidable, but what’s important is for the two sides to handle their differences through coordination based on equality and mutual understanding. Only by acknowledging our extreme interdependence will we make the fishbowl effect work for humanity, rather than against it.