| The U.S.-China relationship hasn't been this fraught since normalization in the 1970s. Former U.S. Treasury Secretary Hank Paulson on Monday noted that his warning two years ago that a new Iron Curtain would descend between the world's two largest economies had been borne out. That's why this week's Bloomberg New Economy Forum sought to dissect the problem on its opening day. Former Secretary of State Henry Kissinger, the architect of detente, chimed in that unless the two sides figured out a way to collaborate, the world faced catastrophe on a par with World War I—except that 21st century warfare can spiral out of control much more quickly. Chinese President Xi Jinping's long tenure has upended U.S.-China relations, former U.S. President Bill Clinton said, and will require President-elect Joe Biden and America's allies to take a more coordinated approach to dealing with Beijing. Yet in one area at least the relationship is looking up: finance. Wall Street investors are racing to get into China, the world's only growing major economy. Indeed, one of China's top securities regulators said Monday that a Biden presidency offered a pathway for mending frayed relations. Fang Xinghai, vice chairman of the China Securities Regulatory Commission, called for patience from the U.S., but promised "huge progress" in opening up the Chinese economy.  Fang Xinghai, vice chairman of China Securities Regulatory Commission In the U.S., stock markets are booming. On Monday, they hit record highs on hopes for a Covid-19 vaccine in the new year. Meanwhile, small businesses everywhere are going bankrupt. In very cruel fashion, the coronavirus has highlighted an old cliche: Stocks are not the economy. The pandemic has disproportionately affected the poor, who don't own stocks. It has also devastated mom-and-pop entrepreneurs who survive from week to week on cash receipts, and not the corporate giants who can easily tap soaring equity markets. Which is why this year's Forum has focused on finance from the bottom-up. Stephen Schwarzman, chief executive of the Blackstone Group (certainly at the top of the food chain), recommended a "Marshall Plan for the middle classes" as part of a panel discussing a "New Deal" for workers.  Stephen Schwarzman, CEO of Blackstone Group Education would be at the heart of any sweeping rescue plan. Schwarzman suggests teachers be exempt from taxes to help attract the best and the brightest. International Business Machines Executive Chairman Ginni Rometty highlighted the importance of what she called "new-collar jobs" as a way to attract candidates with different backgrounds to the tech industry. Singapore's Tharman Shanmugaratnam wants to use artificial intelligence tools to match workers to employers, allowing for better hiring on skills rather than just credentials. Tharman did push back on one popular idea, though: universal basic income. "It's extremely regressive," he said. "The idea of giving everyone a certain quantum of money is very different from giving the poor, the lower-middle income group, what they need." —Andy Browne | 
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