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China has capitalized on its huge population and geographic size to become the world’s most efficient assembler and exporter of manufactured goods, but China’s transformation is now reaching a critical turning point.
Although the U.S. Federal Reserve's recent quantitative easing is a necessary step, it makes China even less likely to embrace Secretary Geithner's proposal to limit current account surpluses.
Despite growing Chinese nationalism, several areas of disagreement with Beijing, and misinterpretation of regional and bilateral issues by the media, the Obama administration has not substantially shifted its stance on China.
President Obama's trip to Asia will be an opportunity to strengthen bilateral relationships, address challenging global issues, and demonstrate U.S. commitment to the region.
An international agreement to limit current account surpluses would be a productive step toward global economic rebalancing, but in order to decrease its trade deficit, the United States must also enact domestic reform.
President Obama's upcoming trip to four Asian democracies will signal U.S. commitment to the region at a time when China's growing assertiveness has its neighbors worried.
If China is forced to substantially revalue its currency, it is likely to enact policies for maintaining its export competitiveness that could hurt Western economies.
China’s recent actions demonstrate a growing global assertiveness at odds with the more benign rhetoric of Beijing’s leadership and are a cause of growing concern among the international community.
China’s trade surplus is best understood as part of a regional export surplus, and a revaluation of the yuan will likely not only leave the balance of trade largely the same but might actually hurt economies in the West.
Global growth is stimulated by increased demand, and while China is currently the largest component of global growth due to its strong economy, it is not a major net contributor to growth outside its borders.