Who Holds The Cards In The Trade War: U.S. Or China?

He who produces or he who consumes. Who holds the power? If China cut off the United States, shelves could go empty in weeks. If the U.S. closes its doors to China, the country’s income would collapse ushering in a severe depression.

So should American’s count their blessings as they are showered with inexpensive goods or is “the customer always right”?

Tonight we will have our answer. Visit the ZeroHedge homepage tonight at 7pm ET for our Premium China Debate with Carnegie Endowment’s Michael Pettis and Z-Ben Advisors’ Peter Alexander. The event will be moderated by Michael Green of Simplify Asset Management. Each has studied China for decades and will provide the respective bear and bull case for the burgeoning superpower’s economic growth prospects. They will also weigh in on the ongoing U.S.-China trade war.

Bear Case From Pettis:

• China’s past economic success was driven by strong supply-side growth, especially during the 1980s to 2000s.

• The current major constraint is on the demand side, particularly domestic consumption, which is historically low.

• Weak consumption makes it difficult to grow the supply side without:

  • Increasing investment, which China is reluctant…