US-China Trade Update 4-10-2012: Strategic Distrust

The United States and China are two of the world’s most powerful and influential nations and the state of their relationship is critically important to countries across the globe. According to Kenneth Liebertahl, director of the John L. Thornton China Center and co-author of a new paper, "Addressing U.S.-China Strategic Distrust", despite economic and political ties, both the U.S. and China harbor a "growing, strategic distrust of the other that could threaten their partnership." Lieberthal elaborates that despite the two sides understanding each others’ position on major issues and extensive dealings between the two governments, trust regarding long-term intentions on either side has not evolved.

 All this and much more in this week’s U.S China update.

Contents
Economy
Global Relations
Trade

Economy

Commentary: The ways China can rebalance
China Financial Markets, April 9, 2012
“No matter how sincere its intentions, what Beijing says it will do over the next few years is meaningful only if its policies are both internally consistent and do not violate external constraints.” Read More

In the News: Fostering China’s Creative Entrepreneurs
Wall Street Journal China Real Time Report, April 9, 2012
“Formerly Microsoft China’s general counsel focusing on intellectual property, the 57-year-old Colorado native opened Yuanfen, a new-media art gallery in Beijing’s trendy 798 arts district, in 2008. In September he transformed the gallery into Yuanfen Flow, a business incubator that nurtures start-ups that combine art, business and sustainability with technology.” Read More

In the News: China's PPI down 0.3% in March
China Daily, April 9, 2012
“China's Producer Price Index (PPI), a main gauge of inflation at wholesale level, fell 0.3 percent in March from a year earlier, according to figures released Monday by the National Bureau of Statistics (NBS). It is the first time the PPI has seen negative year-on-year growth since December 2009.” Read More

In the news: China’s military rise
The Economist,  April  7 2012

“No Matter how often China has emphasized the idea of a peaceful rise, the pace and nature of its military modernization inevitably cause alarm. As America and the big European powers reduce their defense spending, China looks likely to maintain the past decade’s increases of about 12% a year.” Read More
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Global Relations

Commentary: NYT: How China Steals Our Secrets
Council on Foreign Relations China,  April 2, 2012
“Richard Clarke, former special adviser to the president for cybersecurity, says the proposed cybersecurity bill would not do much to stop Chinese cyber espionage. He suggests that the Obama administration act to stop the threat." Read More

Commentary: Growing Distrust between China and the U.S.
Institution, John L. Thornton China Center,  April 6, 2012
“The United States and China are two of the world’s most powerful and influential nations and the state of their relationship is critically important to countries across the globe. Despite their economic and political ties, each nation harbors a growing, strategic distrust of the other that could threaten their partnership.” Read More  Read the Paper
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Trade

In the News: China banking stocks still a buy as reforms remain distant
China Economic Review, April 9, 2012
“State-owned banks have always preferred lending to their SOE brethren rather than small and medium enterprises. To truly address Wen's concerns, the Chinese government would likely need to not only.” Read More
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