On the second day of the Bloomberg New Economy Forum in Singapore, former US Treasury Secretary Hank Paulson warned of an "economic iron curtain" dividing the world if China and the US failed to resolve their strategic differences. Our correspondent Miro Lu sat down with Deborah Lehr, Vice Chairman of the Paulson Institute and senior advisor to Hank Paulson on China-US relations for some comment on their current issues.

MIRO LU "Throughout this two-day forum, we've heard a lot of people talking about a new world order, the US-China relationship in a different format. This morning Hank said, we've reached another of those consequential moments, are we at this time that in 10 years' time we are going to look back and say, oh it was during that time period that it was history in the making, something changed."

DEBORAH LEHR VICE CHAIRMAN, PAULSON INSTITUTE "Well something has changed and part of that is that China is a growing power. And how the United States deals with that is going to be very important and how China deals with that is going to be very important. We are at a moment where the leaders have decisions to make, they need to decide what type of bilateral and what type of multilateral relationship they want. Does this existing world order suit this new relationship or does it need to be changed. Mr. Paulson was arguing for example, for an upgrading of the World Trade Organisation, that it needs to reflect today's modern trading era. These are the kind of global governance issues that we need to be focusing on as well as addressing issues that what kind of relationship we want to have with China as a growing power."

MIRO LU "The two leaders from both countries are going to meet at the sidelines of the G20, at the end of this month. Is there going to be a breakthrough, is this going to open up a new area?"

DEBORAH LEHR VICE CHAIRMAN, PAULSON INSTITUTE "Well we hope that there will be progress on the trade issue and certainly on the tariff issue. But that's just one of the many issues facing both the countries and facing the leaders, and so I suspect it will be a very broad dialogue that'll include issues ranging from trade obviously to North Korea, to cooperation in other areas. But hopefully, if we can make some progress on trade it will create a more positive momentum for resolving some of these much more difficult issues."