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China has passed the point where double-digit growth alone can guarantee price stability and employment. It must now pursue more balanced and less rapid economic growth.
Blaming the undervalued Chinese renminbi for America's economic ills is convenient but counterproductive, given the complicated causes of U.S. trade imbalances.
Given that maintaining the status quo in the Taiwan Strait risks a serious confrontation with China, Washington should consider negotiating directly with Beijing, in consultation with Taipei, to move toward a more stable cross-strait relationship.
Turning to foreign sources of capital, like a bailout by the BRIC countries, would only aggravate Europe’s economic problems, hurt growth prospects, and make the ultimate resolution of the debt crisis more difficult than ever.
While Washington shouldn’t alter its general strategy toward Beijing, it should rethink some approaches in order to minimize the chance that the two countries will be drawn into competition for strategic primacy in the Asia-Pacific region.
Far from resolving America's economic woes, targeting China's currency will only result in higher prices for U.S. consumers and reduced global demand.
Instead of more tough talk and increased defense spending, the United States and its allies in Asia need to shape a regional approach focused more on creating incentives to cooperate than on neutralizing possible Chinese military capabilities.
Although tempting in the short run, a sudden influx of foreign capital into the European Union would raise both unemployment and debt without addressing the root of Europe's economic woes.
As the United States enters a gradual period of recovery from the financial crisis and China’s economic future seems fraught with danger, America still has the ability to serve as a source of stability for the Asia-Pacific region.
Despite growing fears of a sharp slowdown in China, the Chinese economy is in a strong position and policy makers have the ability—and the resources—to ensure that growth does not decelerate too quickly.