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.
China’s domestic development drive has prompted it to develop trade relations with Latin America. While generating positive economic results for both sides in the short-term, the threat of Latin America once again falling into a pattern of export dependency—this time with China—looms large.
As China’s military modernization steadily advances, there are questions in Washington about Beijing’s ability to project power abroad and deter U.S. intervention in the Pacific—and whether that poses a threat to American interests
Open communication between the U.S. and Chinese governments and militaries can help overcome mutual distrust and create opportunities to tackle the world’s most critical problems, from the global economic crisis to stability on the Korean peninsula.
Beijing's usage of the term "core interests" to describe its critical national priorities indicates that while China has become increasingly assertive on the global stage, the nature and direction of this assertiveness is still being worked out by Chinese leaders.