Not quite sure. The Economist has a full survey on the somewhat rocky economic relationship between the two economic behemoths. In a nutshell, China doesn't need America as much as America needs China. If you've ever been in a relationship, then you know it's no good if both sides don't need each other equally.
1 comments:
Yes, at some point in the more distant future. But for right now, the two sides are dependent on one another.
We need them to help manage our debt...and they need us as a shelter to store their capital (the "safe" dollar, treasuries, a place to invest their money, etc), and they also need our trade.
But in 20 years, who knows. By then, several Countries may have abandoned the U.S. dollar for the Euro or some other alternative currency....and China is likely to be a much bigger economic giant and could be more willing to take certain risks.
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