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.
Although an appreciation in China's currency value could benefit the United States in theory, Chinese leaders would likely counterbalance such a rise with policies that could further damage both the Chinese and U.S. economies.
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.
State-level visits between China and the United States are very important, given that relations between China nd the United States are probably going to be among the most critical bilateral relationships for the next fifteen years.
In spite of China’s high growth rates, the country still faces a number of economic challenges, from trade tensions with the West to reducing income inequality domestically.
As China's global influence continues to grow, the country must work to strengthen its relations with its neighbors and balance its economy in a way that promotes domestic growth without increasing international tensions.
While tensions exist in the relationship between China and Europe, enhanced bilateral cooperation would be beneficial to both sides and valuable for promoting global stability and development.