Bloomberg Businessweek USA - October 30, 2017

LOOK AHEAD ○ Mexico reports preliminary third-
quarter GDP on Oct. 31

○ Russia reports monthly oil

output on Nov. 2

○ Fed chair Janet Yellen presides

over what may be her last rate-

setting meeting on Oct. 31-Nov. 1

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October 30, 2017

Edited by

Cristina Lindblad

Businessweek.com

After the fall of the Berlin Wall, many econ-
omists and policymakers assumed the
world would become one happy, prosperous
economy. Aided by the spread of capitalism
and technology, countries would be increas-
ingly knit together by trade, finance, and the
internet. There would, of course, be the occa-
sional setback—such as the 2008 financial
crisis. But ultimately the forces of globaliza-
tion would prove irresistible and ever-tighter
integration inevitable.

A serious obstacle has emerged to that vision.

It’s not Donald Trump’s threat of trade wars or

Brexit or terrorism. It’s China.

If we tease out the trends taking shape in China

and its relations with the U.S. and other devel-

oped countries, we can foresee an unhealthy

schism forming and widening in coming years.

The global economy could be split into two giant

parts. One would be centered in the U.S. and

the European Union; the other would revolve

around China.

Listening to the rhetoric streaming out

of Beijing, it’s easy to believe that China

remains intent on melding itself into the

global economy. In his speech to open the

latest Communist Party congress, President

Xi Jinping promised to give foreign compa-

nies wider access to China’s markets and

○ China is creating its own

international ecosystem. That

may not be good for everyone

E C O N O M I C S