The newest update on China - U.S. relations - economic (currency, trade) and political (China and its neighbors) .
At a conference of the world;'s largest economies in South Korea last weekend the U.S. tried to gain allies to help confront China. Although several countries expressed their agreement on the issues mentioned above, most refused to join the U.S. is making actual detailed proposals to China.
The article also mentions the recent rare earth minerals problem mentioned in a previous article posted by one of our classmates.
The U.S. is also responding by strengthening its relationships with other countries around China.
The article does warm that many people, especially those in power in congress, have been moving towards favoring a harsher approach to China in regards to their currency manipulation. This worries me - threatening China will not work well, the Chinese mentality and pride will not let them simple roll over especially now with their new pride after the U.S."s economic recession.
I feel like giving out a harsh punishment could work both ways. The problem is we depend a lot of China for goods and some services, so they could get upset and cut us off. It also works the other way as well, China may raise its currency due to the fact that their economy depends on U.S. and other countries.
ReplyDeleteDepending on China for goods is not as much of a problem as that our economy is being held afloat because of Chinese buying our treasury bonds that fuels our government spending - Americans are not the ones who bought those.
ReplyDeleteThe U.S. will have to come to terms with being afraid to piss off the new world power, just as other countries have had to side step our ego for the past few decades.