The G7’s approach to China’s economy is accelerating a new cold war, Nouriel Roubini wrote.
Western commitment to containing China’s economic influence, risks an eventual “violent crack-up.”
Export restrictions of key technology to China may come with economic retaliation.
While the US has voiced hopes for warmer relations with China, the G7’s approach to Beijing is accelerating another cold war, economist Nouriel Roubini wrote in a Project Syndicate piece.
Despite rhetoric at the May summit that suggested de-risking relations with China rather than a more aggressive decoupling, the group shows that “far from thawing, the new cold war is getting colder,” he warned.
“Unlike previous gatherings, when G7 leaders offered mostly talk and little action, this summit turned out to be one of the most important in the group’s history,” he wrote. “The US, Japan, Europe, and their friends and allies made it clearer than ever that they intend to join forces to counter China.”
Roubini pointed to the inclusion of India, South Korea, Indonesia and Brazil in the summit as well as warnings against China’s “economic coercion,” expansion the South and East China Seas, and aggression against Taiwan.
After the summit, Beijing accused Western leaders of trying to contain and suppress China. And Roubini said Beijing could use its dominance in rare-earths metals to retaliate against the US sanctions and trade restrictions.
Meanwhile, the trade standoff around semiconductors is also fueling cooler relations as US export restrictions are joined by more allies — a bid to keep China technologically behind.
“So, while the G7 may have set out to deter China without escalating the cold war, the perception in Beijing suggests that Western leaders failed to thread the needle. It is now clearer than ever that the US and the broader West are committed to containing China’s rise,” he concluded.
He cited also recent interviews with Henry Kissinger, who helped reopen US-China relations in the 1970s, where the veteran diplomat warned that the two countries are on a “collision course” unless they reach a new understanding.
“The deeper the freeze, the greater the risk of a violent crack-up,” Roubini said.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
