Yahoo Finance The US and China are on a collision course that will worsen the geopolitical economic depression, 'Dr. Doom' economist Nouriel Roubini warns
The US and China are on a collision course that's set to worsen a "geopolitical depression," Nouriel Roubini said.
"Fragmentation and decoupling are becoming the new normal," he said, warning that prospects for US-China cooperation are fading.
Roubini previously said a geopolitical depression will have far-reaching economic and financial consequences.
US-China relations are on a slow-motion collision course – and it's set to worsen a "geopolitical depression" that threatens huge economic and financial consequences, according to "Dr. Doom" economist Nouriel Roubini.
Roubini, who is known for his doomsday economic predictions, sounded off on US-China tensions and pointed to the growing risk of conflict.
"Despite US officials' efforts to establish guardrails for strategic competition with China, and Chinese officials' insistence that they have no interest in economic decoupling, prospects for cooperation look increasingly remote," Roubini said in an op-ed for Project Syndicate on Wednesday. "Fragmentation and decoupling are becoming the new normal, the two countries remain on a collision course, and a dangerous deepening of the ongoing 'geopolitical depression' is all but inevitable."
He recalled a recent meeting with Chinese premier Li Qiang, who talked about US lawmakers' heated questioning of TikTok's CEO in March.
Roubini said Li's comments included an "implicit warning" that China could retaliate if its other companies are treated harshly by the US.
And while Treasury Secretary Janet Yellen has tried to ease tensions, he said that's a difficult task given US efforts to limit Chinese investments in the US as well as US investments in China.
In a column in February, Roubini warned the world has entered a geopolitical depression that will have far-reaching economic and financial consequences.
Russia's invasion of Ukraine creates a divide between Western nations and "revisionist powers," like China, Russia, Iran, and North Korea, he said at the time, adding that such fragmentation could tip the global economy into a stagflationary recession.
"In particular, a hot war between major powers is now more likely within the next decade," Roubini wrote in February.
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