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As Asian countries seek to maintain trade advantage by manipulating their currencies, the United States and Europe, who have little room to devalue, may respond with protectionist measures that will hurt global trade.
Since China’s core interests regarding North Korea have not changed, its highly risk-averse approach, which focuses on mediation and limited pressure, will probably continue.
Without greater global investment or a rise in Chinese domestic consumption, the increasing U.S. savings rate will have serious repercussions for both the Chinese and American economies and create aftershocks in dozens of other countries.
Despite recent Chinese criticism of low U.S. interest rates, changing these rates in either direction would have adverse effects on China’s economy, underscoring the deep imbalances in the global financial system.
Despite a lack of concrete deliverables, President Obama’s trip to Asia still accomplished the important objective of showing China that the United States is serious about engaging the region and remaining a Pacific power.
As the world's largest emitter of greenhouse gases, China will be central to efforts to combat global climate change at Copenhagen and beyond.
China is likely to be both a partner and a contender in its relations with the United States, with the depth of its cooperation limited by the extent to which the two countries have overlapping national interests.
As President Obama leaves on a nine-day tour of Asia, he will express U.S. policy priorities and focus on tackling bigger, long-term issues including the economic recovery, nonproliferation, and climate change.
President Obama’s trip to Asia will signal renewed U.S. commitment to this vitally important region. Perhaps the most important stop will be in China, where Obama will seek to ease lingering strategic distrust and discuss key issues of trade, climate change, and security.
During his ten-day diplomatic tour of the Asia-Pacific region, Obama will reassure Asian nations that the United States will continue to play a role in balancing Chinese influence in the region, and reassure China that Washington seeks cooperation rather than confrontation with Beijing.