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How China benefits from another US banking crisis

By Stephen S. Roach

24 Mar 2023 · 4 min read

Editor's Note

"A rising China is taking dead aim at crisis-prone America." In PS, Stephen S. Roach argues there's a troubling interplay between the US-made financial shock and the escalating Sino-American cold war.

BEIJING – No two crises are alike. That is true of recent financial upheavals – the Asian financial crisis of the late 1990s, the dot-com crisis of 2000, and the global financial crisis of 2008-09. It is also the case with crises sparked by geostrategic shocks, such as wars, pestilence, famine, and pandemics.

Today, we are witnessing a potentially lethal interplay between these two sources of upheaval: a financial crisis, reflected in the failure of Silicon Valley Bank, and a geostrategic crisis, reflected in the deepening cold war between the United States and China. While the origins of each crisis are different, in one sense it doesn’t really matter: The outcome of their interaction is likely to be greater than the sum of the parts.

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