China is emerging from the economic crisis sooner than any other large economy, accelerating its rise as a global leader in the economic and financial arena.
China’s present model of economic development forces households to subsidize large amounts of often inefficient investment. If Beijing sticks to this policy, domestic consumption will continue to stagnate and constrain overall growth.
While the Chinese Communist Party has succeeded in erasing dark chapters of its history from the minds of many Chinese, it cannot expect to gain true international respect until it admits its historical failings.
While China’s military parade may provide a temporary boost of national pride, in the long term, it will be little more than a passing distraction from the intractable problems confronting the regime.
While the PRC’s sixtieth birthday military parade is primarily intended to stir domestic political support, it also sends a strong international message by showcasing the nation as a modern military powerhouse.
As the deadlock continues over North Korea’s nuclear program, China is likely to stick to its risk-averse policy of dialoguing with Pyongyang despite high costs and limited returns.
As China celebrates its sixtieth anniversary under communist rule on October 1, the CCP’s survival is unclear because it hinges on high rates of economic growth that may be unsustainable.
With little chance that China will be able to increase its consumption rate to compensate for increased U.S. savings rates, the world may face a period of slower growth.
Propelled by massive monetary and fiscal stimulus programs, China’s economic rebound outpaced even optimistic predictions, putting the government’s target of 8 percent growth in 2009 within reach.
While the election victory of the Democratic Party of Japan could alter regional dynamics and the U.S.-Japan alliance, it is unlikely to cause significant changes to the bilateral relationship in the long-run.