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While the United States and China—the world’s two largest economies—are becoming increasingly interdependent, there is a growing risk of misunderstanding or even clashes. The two powers need a dialogue to provide strategic vision to their relationship.
While China’s labor activism signals a broader political re-awakening of its civil society, this emerging phenomenon does not guarantee fundamental change to the country’s autocratic political order.
Investors concerned that China will dump its holdings of U.S. Treasury bonds should be worrying instead about an increase of foreign capital in U.S. markets, which will cause the U.S. trade deficit to surge.
An era of negotiation has succeeded decades of confrontation across the Taiwan Strait, raising questions about the political, security and economic dimensions of the new cross-Strait situation.
The central bank of China has cautiously begun to tighten monetary policy in response to a massive residential property bubble, demonstrating Beijing’s belief that it has both the policy tools and the political will to control the bubble and avoid a burst.
Obama’s bilateral meetings with key Asian leaders on the sidelines of the Toronto G-20 have put the United States back on a positive track in the region.
China must walk a tightrope in its policies toward Iran, cultivating useful economic and strategic ties with Tehran while also supporting nonproliferation efforts and maintaining friendly relations with Washington.
While the upcoming G20 meeting likely influenced the specific timing of Beijing's announcement that it would allow greater flexibility in its currency, the collapse of the euro offered a good opportunity for change.
Aside from adjusting their currency, Chinese policy makers must also consider other important factors in order to increase domestic demand and cut reliance on exports.
Since China’s stock market is driven mainly by speculators instead of fundamental or value investors, it does not serve as a good indicator of the country’s long-term growth prospects.