"Conditions for Conflict": U.S. Too Tolerant of China's "Bad Behavior," Asia Expert Says
With its $847 billion in Treasury securities, China is the largest foreign holder of U.S. debt. However, China's export industry would virtually collapse without the U.S. market. "China this year has run up a $145 billion trade surplus with the U.S., more than the U.S. deficit with the next seven-largest trading partners combined," according to Bloomberg.
"We have this tremendous leverage," in the relationship, which to our detriment, "we never think of using," Chang says, noting China has a net trade deficit with its other trading partners and is thus wholly dependent on U.S. consumption.
"We are creating the conditions for conflict" and "making matters worse" by being "very patient and tolerant with behavior that's clearly unacceptable," Chang argues. "The Chinese are learning 'we can get away with bad behavior.' We've created these perverse incentives, which is part of the reason why China has become more aggressive recently."
发表于 2010-9-29 20:54
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发表于 2010-9-29 21:16
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