Unbalanced: The Codependency of America and China

An original and insightful analysis of the U.S.–China economic relationship  "Lucid and accessible. . . . One of the most important books on the relationship between the United States and China to be published in at least a decade."—Huffington Post The Chinese and U.S. economies have been locked in an uncomfortable embrace since the late 1970s. Although the relationship initially arose out of mutual benefits, in recent years it has taken on the trappings of an unstable codependence, with the two largest economies in the world losing their sense of self, increasing the risk of their turning on one another in a destructive fashion.     In Unbalanced: The Codependency of America and China Stephen Roach, senior fellow at Yale University and former chairman of Morgan Stanley Asia, lays bare the pitfalls of the current China-U.S. economic relationship. He highlights the conflicts at the center of current tensions, including disputes over trade policies and intellectual property rights, sharp contrasts in leadership styles, the role of the Internet, the recent dispute over cyberhacking, and more.   A firsthand witness to the Asian financial crisis of the late 1990s, Roach likely knows more about the U.S.-China economic relationship than any other Westerner. Here he discusses:  Why America saving too little and China saving too much creates mounting problems for both How China is planning to re-boot its economic growth model by moving from an external export-led model to one of internal consumerism with a new focus on service industries How America, shows a disturbing lack of strategy, preferring a short-term reactive approach over a more coherent Chinese-style planning framework The way out: what America could do to turn its own economic fate around and position itself for a healthy economic and political relationship with China  In the wake of the 2008 crisis, both unbalanced economies face urgent and mutually beneficial rebalancings. Unbalanced concludes with a recipe for resolving the escalating tensions of codependence. Roach argues that the Next China offers much for the Next America—and vice versa.  

About the Author :
Stephen Roach is senior fellow, Jackson Institute for Global Affairs and School of Management, Yale University, and the former chairman of Morgan Stanley Asia. He lives in New Canaan, CT.

Review :
‘“I learned much from Stephen Roach’s book Unbalanced. . . . A lucid and accessible primer on each country’s strengths, weaknesses, and prospects, highly recommendable to specialists and lay people alike.”—Ian Johnson, New York Review of Books “An evenhanded, thorough response to the anti China potshots from Democrats and Republicans alike. . . . The root problem, Roach says repeatedly, is America’s inability to save enough at home to finance its growth—a situation that is hardly China’s fault. And a day of reckoning is coming [for the United States and China].”—Fred Andrews, New York Times “[A] thorough overview of the economics behind the 21st century’s defining relationship. Roach approaches it with academic rigour and a knack for explaining complex ideas in simple terms.”—David Bartram, South China Morning Post “Watching Chinese officials turn the tables on the United States, I can’t help but wonder if they’ve been reading Stephen Roach’s new book.”—William Pesek, Japan Times “The most interesting part of the book is a barely disguised morality play. Roach sees Chinese leaders as clever, purposeful and far-thinking. He sees Americans as undisciplined and led by people who undervalue investment and economic planning. . . . His fervour is persuasive.”—Edward Hadas, Reuters Breakingviews “Getting those points across to the two countries will take a major effort. So far there are no answers. Reading Roach’s book would be a good place to at least lean how to pose the questions.”—John Berthelsen, Asia Sentinel “Lucid insights into the rise of China. Roach’s assessment of America’s trade relationship with China is well worth the read.”—Matthew Partridge, Money World (UK) “In a world flooded with books on the China ‘threat,’ Roach’s analysis is refreshingly factual, informative, and insightful.”—Shada Islam, Europe’s World “Stephen Roach combines scholarly expertise and long practical experience in this thought-provoking critique of economic policy. His insights and arguments will influence the debate on both sides of the Pacific.”—Henry A. Kissinger “An important and fascinating book about the structural changes and evolving codependency of the world’s two largest and most dynamic economies. Unbalanced is an education in growth, stability, and postwar globalization, full of deep insights and colorful personalities on both sides, and wonderfully well written. Very few people have the breadth of knowledge and experience to write such a book.”—A. Michael Spence, Nobel laureate in economics “How the United States and China will transit from precarious codependency to stable coexistence is one of the most crucial questions for the twenty-first century. Stephen Roach, with his profound grasp of the economic and political systems in the United States and China, describes the challenges, opportunities, and necessary adjustments for both countries. This is a timely must read book for anyone concerned about the future of the world.”—Justin Yifu Lin, former chief economist, the World Bank “Unbalanced is a compelling analysis of China’s transition to a new model of economic growth and the challenges this transition will create for the United States.”—Nicholas Lardy, Anthony M. Solomon Senior Fellow, Peterson Institute for International Economics