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Despite debate about when the Chinese economy will be larger than that of the United States, hidden income, a potentially undervalued currency, environmental degradation and wasted investment make it difficult to determine the true size of China's economy.
In China, with its already too-low household consumption, forcing households to finance another banking crisis would only add to the difficulties Beijing faces in its efforts to rebalance the nation’s economy.
While China's trade imbalance and currency valuation are in a process of gradual rebalancing, the central question now facing China's economy is how to begin producing higher technology exports.
The United States and China have already seen an improvement in bilateral ties in the months leading up to President Hu Jintao's visit to Washington and this positive momentum should be maintained going forward.
President Hu Jintao's state visit put a halt to a downward spiral in U.S.-China relations and resulted in a joint statement that acknowledged the U.S. role in Asia's security and helped to resolve specific trade disputes.
As China’s military modernization steadily advances, there are questions in Washington about Beijing’s ability to project power abroad and deter U.S. intervention in the Pacific—and whether that poses a threat to American interests
Open communication between the U.S. and Chinese governments and militaries can help overcome mutual distrust and create opportunities to tackle the world’s most critical problems, from the global economic crisis to stability on the Korean peninsula.
During Chinese President Hu's state visit to Washington, he and President Obama will likely discuss the four key economic issues of currency revaluation, the trade balance, China's domestic imbalances, and the internationalization of the renminbi.
A major adjustment of China’s currency by itself won’t solve U.S. economic woes, but other approaches—including internationalizing the renminbi—would benefit both sides.
In his last state visit to the United States as president, Hu Jintao will try to stabilize U.S.-China relations to shore up his political legacy, creating an opportunity to change the contentious tone of the past year and perhaps even “reset” the bilateral relationship.