US and China are on a collision course that could risk conflict | Nouriel Roubini

G7 sought deterrence without escalating new cold war but Beijing responded with rage

After the May G7 summit in Hiroshima, the US president, Joe Biden, claimed that he expected a thaw" in relations with China. Yet, despite some recent official bilateral meetings - with the US secretary of the Treasury, Janet Yellen, expressing hopes for a visit to China soon - relations remain icy.

In fact, far from thawing, the new cold war is getting colder, and the G7 summit itself magnified Chinese concerns about the US pursuing a strategy of comprehensive containment, encirclement and suppression". Unlike previous gatherings, when G7 leaders offered mostly talk and little action, this summit turned out to be one of the most important in the group's history. The US, Japan, Europe and their friends and allies made it clearer than ever that they intended to join forces to counter China.