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.
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.
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.