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The execution of America’s strategic 'pivot' to Asia, and China's response, are combining to deepen mutual suspicions and potentially destabilize the entire area.
During his ten days in the Asia-Pacific, President Obama managed to convey successfully his administration’s determination to “rebalance” American attention, influence, and investment toward Asia, and away from the wars in Iraq and Afghanistan.
While much attention was paid to the competitive aspects of U.S.-China relations during President Obama's recent trip to Asia, the broader consequences and outcomes of the trip are more nuanced.
Stability in cross-Strait relations is based on policies in Taipei, Beijing, and Washington, but with all three countries looking toward potential changes in leadership, the framework for peace remains fragile.
China will not simply bail out Pakistan with loans, investment, and aid, as those watching the deterioration of U.S.-Pakistani relations seem to expect. Rather, China will pursue profits, security, and geopolitical advantage regardless of Islamabad's preferences.
The recent cut in China’s bank reserve ratio indicates that Beijing has prioritized stimulating economic growth over moderating a potentially overheated economy.
As the world's predominant political, economic, and military force, the United States faces a significant challenge in responding to China's rising power and influence, especially in Asia.
Although much about the interaction between China’s military and those who decide its foreign policy remains unknown or only dimly understood by outsiders, a close look reveals that the military does not wield ongoing decisive influence over fundamental aspects of Beijing’s foreign policy.
China faces the difficult challenge of promoting macroeconomic rebalancing without rekindling inflation and property bubbles.
Beijing has been using the financial system to fund public expenditure needs, many of which are not commercial in nature and would normally be undertaken through the budget.