Former US Treasury Secretary Henry Paulson has warned that a “full-blown cold war” is brewing between China and the US if both nations don’t take steps toward reconciliation.
In remarks delivered at the Bloomberg New Economy Forum in Singapore, Paulson painted a bleak picture of the future between Washington and Beijing should the impasse continue.
“Big parts of the global economy will ultimately be closed off to the free flow of investment and trade,” he warned.
“And that is why I now see the prospect of an economic Iron Curtain – one that throws up new walls on each side and unmakes the global economy, as we have known it.”
His message comes as US President Donald Trump and Chinese President Xi Jinping are expected to meet at the upcoming G-20 summit in Argentina, although analysts believe it is unlikely the two leaders will reach a trade agreement at the meeting.
The US and China have been involved in an increasingly bitter…