U.S. Policy Towards China Criticized as “Sinophobic” by Senior Yale Law Fellow

In a recent episode of the Odd Lots podcast by Bloomberg, Stephen Roach, senior fellow at Yale Law School and former chairman of Morgan Stanley Asia, criticized the current U.S. policy towards China, calling it “Sinophobic.” Roach expressed concern about the escalating vilification of China, cautioning about the potentially disastrous consequences of this approach. He highlighted the bipartisan consensus in Washington on being tough on China, leading to an intense era of Sinophobia fueled by tariffs and additional restrictions imposed under the banner of national security.

Roach criticized the exaggeration of national security threats posed by China, pointing out instances where U.S. officials raised concerns without substantial evidence, such as Commerce Secretary Gina Raimondo’s warning about Chinese electric vehicles potentially being used as weapons of mass destruction. He highlighted the misplaced focus on reducing the trade deficit with China, noting that it is part of larger deficits with numerous countries resulting from America’s low domestic savings rate. Roach warned about the potential for accidental conflict between the U.S. and China, citing Henry Kissinger’s alert about the nations being on the brink of a new Cold War.

Roach advocated for a shift in U.S. policy towards China, emphasizing the need to address budget deficits and invest in domestic infrastructure and human capital for economic stability and independence. He urged the U.S. to focus on building internal strength to create a more balanced and sustainable economic relationship with China. Roach’s perspective aligns with concerns raised by other experts, including economist Jeffrey Sachs, who cautioned that current U.S. actions aimed at containing China could lead to heightened tensions and potential conflict between the two nations.