Toronto, Feb 14 (TIWN) The rivalry between the U.S. and China, recently highlighted during the Chinese spy balloon crisis, is not going to escalate and split the world into two hostile camps and the era of globalisation isn't over yet, a study said on Monday.

Reports of globalisation’s death are premature, according to researchers at the University of Waterloo, the University of British Columbia and the China Europe International Business School in Shanghai.
“The potential economic cost of doing this is too high for the U.S., China, their allies, and the entire world. The breakdown of globalisation ultimately hurts consumers, which we are all experiencing too well. Globalisation is not over,” said Dr Victor Cui, a professor at Waterloo’s Conrad School of Entrepreneurship and Business.

“We expect China’s threat will slowly disappear – it is not sustainable,” Cui added. “Once the fear of China’s rise declines in the U.S., we expect the disengagement to slow down and even dissipate. We can be conservatively optimistic there will be changes.”

The U.S. believes that the suspected Chinese surveillance balloon that it shot down on February 4 over Atlantic Ocean, was part of a wider effort by Beijing to spy on military assets in other countries, including India.

However, beyond economic realities, the researchers found that the U.S.-China rivalry is based, in part, on misunderstanding.