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Turning to foreign sources of capital, like a bailout by the BRIC countries, would only aggravate Europe’s economic problems, hurt growth prospects, and make the ultimate resolution of the debt crisis more difficult than ever.
While Washington shouldn’t alter its general strategy toward Beijing, it should rethink some approaches in order to minimize the chance that the two countries will be drawn into competition for strategic primacy in the Asia-Pacific region.
Far from resolving America's economic woes, targeting China's currency will only result in higher prices for U.S. consumers and reduced global demand.
As the 18th National Party Congress approaches, 2012 promises to be a very interesting year for China and few are able to accurately describe how this change might impact China's domestic and international policies.
Instead of more tough talk and increased defense spending, the United States and its allies in Asia need to shape a regional approach focused more on creating incentives to cooperate than on neutralizing possible Chinese military capabilities.
It is widely acknowledged that China must transform its growth model toward one more reliant on domestic consumption, and policy makers are warning that growth rates will slow sharply in the coming years to perhaps six to eight percent.
As the United States enters a gradual period of recovery from the financial crisis and China’s economic future seems fraught with danger, America still has the ability to serve as a source of stability for the Asia-Pacific region.
While China remains an engine of growth in an unsettled global economy, it also faces many challenges, including high inflation, the potential of a housing market bubble, and volatile global liquidity conditions.
Despite growing fears of a sharp slowdown in China, the Chinese economy is in a strong position and policy makers have the ability—and the resources—to ensure that growth does not decelerate too quickly.
China's unique status as the source of transboundary river flows to the largest number of countries in the world and its water disputes with many of those countries has serious implications for India.