On Thursday, China's agreement to attend a nuclear summit in Washington
gave many hope that China would finally
join the U.S. on sanctions
against Iran. Today, there are hints
that China could finally be easing
the currency manipulation that has tilted U.S.-China trade relations to
America's detriment. Looking ahead to Chinese President Hu Jintao's
April 13 visit for the nuclear summit, could the U.S.-China chill
finally be thawing?
- Obama and Hu Getting Closer The New York Times' Andrew Jacobs reports that
"Tensions between China and the United States have ebbed significantly
in recent days" due to personal efforts by Presidents Hu and Obama to
mend fences. Both Chinese and U.S. leadership have publicly announced
their desire to strengthen ties and end the chill of the past few
- 'Don't Believe It' Financial Times' Gideon Rachman warns, "beneath the surface, I think there
still are structural forces pushing
the two nations towards a much more adverserial relationship." He cites
irreconcilable economic tensions as well as the fights over Iran and
climate change, which he notes aren't going away. "The mega-trend in the
background is the rise of China and the relative
decline of the US - and the expression of this will be the gradual
challenge to American military hegemony in the Pacific. This will not be
a comfortable process"
- U.S. Wins Diplomatic Spat
Foreign Policy's Daniel
Drezner says this has been a short-term disagreement, not a long-term
split. "My take of the past six months is that the Chinese overplayed
their hand very badly across an array of issues, irking not just the
United States but other significant countries. In response, the U.S. has
been able to exploit multilateral resentment as a way of putting subtle
pressure on China to moderate its tone and actions," he writes. "For
now, however, much of China's recent bluster turned out to be
- We Caved to China 24/7 Wall Street's Douglas
McIntyre fumes, "The US will almost certainly delay its decision
about whether to label China as a 'currency manipulator', a move that
will make it clear to the Chinese that they still have tremendous
leverage in talks on the valuation of the yuan. [...] Obama shows that
he will accommodate the Chinese even if it makes his Administration look
- Don't Overestimate Chinese Power Mother Jones' Kevin Drum shrugs. "China's economy is
probably shakier than we usually give it credit for. Not only is it
built on a foundation of booming exports, but its political system
requires fantastic growth rates just to remain stable," he writes.
"Their brand of autocratic government is going to have a very hard time
coping with a restive middle class once per capita income starts to bump
up against $10,000 or so."
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