Have the tables really turned?
It appears the economic crisis is tilting the balance of power gradually away from the U.S. It seems Washington is beginning to relate to China as a respected partner. The tables seem to have turned around and this time it is the US who is having to answer to China for not behaving properly (financially).
China is the US main creditor and is rightly worried about America’s undisciplined spending habits which has landed the US and the world economic order in a financial crisis. Chinese finance minister did not mince his words in pointing to America to pay critical focus on its increasing fiscal deficit. In a recent trade dialogue between them, the Chinese wanted details on how the US intended to manage price volatility and the growing national debt.
The Obama government has accepted that they have learned a basic lesson from China, that is, to live within “our means, is best for the country”
The economic balance of power has tilted indeed – the United States’ is relatively weak and China’s relatively strong. The US cannot afford to harass China over other matters. This has not always been so in past. It was America on the offensive most of the time, either on economic or political reforms that China have to undertake “by now”.
A new democrat approach
President Obama has stated clearly his intentions to work with China on issues of climate change and nuclear nonproliferation. But union leaders and their allies want tough talk with China over Chinese imports.
China is still critical to the funding of increasing national deficits and this generates further set of political implications for both countries in the coming years.
However, it seems things are getting on the bright side with President Obama’s economic relations with China as there is a clear sign of determination by the administration to address the crucial issues of the economy.
The challenge for President Obama will be keeping a balance between containing government expenditure and meeting the demands and expectations of the American people as well as their Chinese financiers.
