China and Russia share significant common ground on a number of issues, but a number of concerns still shape Sino-Russian bilateral relations.
Distorted incentive structures in China are encouraging many Chinese corporations to borrow—and increase their unsustainable level of debt—even though investments are not generating sufficient economic value.
A close comparison of the security perceptions of Chinese and Indian strategic, scientific, and academic experts reveals that the Sino-Indian security dilemma cannot be simply viewed through the prism of the border anymore.
China’s economy can only continue to grow rapidly through ever riskier increases in debt. Eventually, Chinese authorities will either choose to slow growth and curtail investment sharply or they will be forced to do so by their excessive debt.
Rising wages and capital costs are squeezing China's small- and medium-sized enterprises, while administrative attempts to mandate lending through quotas are distorting credit markets.
While strategic stability in China has traditionally reflected a concern for maintaining balance, the discussion has broadened in the past years to include concerns over issues such as nuclear terrorism and disarmament.
Carnegie's Beijing-based associate Lora Saalman speaks at The Asian Institute for Policy Studies' panel, Engaging China and Russia on Nuclear Disarmament.
Despite China's low consumption and high investment relative to GDP, key indicators suggest that its growth is not actually unbalanced.
With the bureaucratic infrastructure for solid bilateral relations between China and Russia already in place, the next step is increased dialogue between the countries’ intellectuals, who can examine the relationship from a broader perspective.
Although Brazil, Russia, India, China, and South Africa enjoy significantly more power individually nowadays, as a group they still haven't mastered the methods for transforming their newfound economic prowess into global power.
In spite of nominal changes in the value of China’s currency and domestic interest rates and wages, China’s economy remains unbalanced, as real interest rates continue to outpace real wages and any real appreciation of the renminbi.
While China’s new aircraft carrier does not pose a major threat to U.S. forces or allies in the Western Pacific, the United States needs to take steps to communicate this message of reassurance to countries in the region.
In order to reduce rural-urban inequality and prevent widespread unrest, China needs to invest its citizens with greater mobility and property rights by reforming its system for household registration.
Although movement is being made toward the resumption of six-party talks with North Korea, persistent disagreements will likely prevent any meaningful progress toward the denuclearization of the Korean Peninsula.
As emerging economies increase in size, a multi-currency arrangement will likely replace the dollar as the bedrock of the international monetary system. For both the United States and the rest of the world, this is not necessarily bad news.
If China is to avoid accumulating unsustainable levels of debt, it must reform its banking system by lowering interest rates, improving corporate governance, ensuring a more predictable regulatory framework, and providing higher quality information to investors.
The ongoing nuclear crisis in Japan is expected to have a profound psychological impact on decision makers and ordinary citizens in China, where the world’s most ambitious nuclear construction is scheduled to unfold in the coming decade.
While the United States has expressed its desire to enhance strategic stability with China, there needs to be a better understanding of how China perceives America’s nuclear posture.
China’s growth in 2010 was impressive, but massive credit expansion has left the economy with a potentially dangerous liquidity overhang and its growth will likely slow in 2011. A host of other risks leave China’s longer-term future more uncertain.
If the Chinese and U.S. militaries cannot commit to a cooperative relationship, progress between the two nations on strategic issues will be limited, hostility could grow, and both sides could become more resolute about defending their respective military objectives.