As the world’s top two economies, the U.S. and China will need to find a way of cooperating to ensure that the global system stabilised in this century, he said.
The advent of the AIIB (Asian Infrastructure Investment Bank) and China’s ambitious Belt and Road initiatives are paving the way for the East Asian giant’s stride into the top world leadership, he said.
“We are in an important transition in world history as well as transition in global political history,” Calder said.
While U.S. has traditionally taken the role of the stabilizer in the world trade system, recent events have raised concerns about the fallout from an increasingly protectionist U.S.
Last week, G-20 finance ministers and central bankers made a token reference to trade in their communique for the first time in a decade after a two-day meeting failed to yield a compromise with the U.S.
