US-China Trade Update 5-17-2012: US-China Relations

This week brought news regarding the US-China relation.  Elizabeth C. Economy spoke highly of recent high-level talks in Beijing, saying "both sides are clearly committed to maintaining stability in the relationship."  Joshua Meltzer, in a response to a recent policy brief, rebuffs the notion that "the single biggest factor determining the shape of the U.S.-China relationship over the coming four years will be the extent of America’s success in getting its domestic house in order.” Rather, he argues, that while many of the challenges to the American economy are domestic in nature, international trade and investment matter more.  He further argues that how the U.S. manages its economic relationship with China will have crucial implications for both the U.S. economy and job creation. 

Meanwhile, The Wall Street Journal focused on investing in the Chinese stock market.  They argue that making a profit in the Asia stock market lies in not what you buy, but knowing when to sell. All this and much more in this week’s U.S. China update.

Contents
Global Relations
Trade
Economy

Global Reations

In the News: China criticizes Australia-US defense alliance
China Economic Review, Tuesday, May 15, 2012
“China has accused Australia of Cold War-era tactics over its plan to enhance defense ties with the US, the Sydney Morning Herald reported. Chinese officials expressed concern over Australia’s plan to allow the deployment of 2,500 US Marines in the northern city of Darwin during a visit by Bob Carr, who took over in March from Kevin Rudd as Australia's foreign affairs minister.“ Read More

Commentary: Maturing U.S.-China Relations
Council on Foreign Relations China, May 9, 2012
“Two developments signal a positive shift in U.S.-China relations--progress in last week's high-level talks in Beijing, and the two sides' efforts to cobble an agreement that would allow dissident Chen Guangcheng to leave China for the United States, says CFR's Elizabeth C. Economy." Read More
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Trade

In the News: US asked to honor export vows
China Daily, May 15, 2012
“China's Ministry of Commerce (MOC) urged Tuesday the US government to live up to its promises on loosening restrictions over hi-tech exports to China.At the fourth round of the China-US Strategic and Economic Dialogue, which concluded early this month, the US government pledged to relax controls on exports of hi-tech products for civilian use.”
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In the News: Meet China’s Best 2011 Stock Analysts
Wall Street Journal China Real Time Report, May 14, 2012
“For many investors last year, buying into Asian companies was a painful move. A number of stock markets got battered across the continent, dropping by as much as 38% in India.Still, as the release of the Wall Street Journal’s “Asia’s Best Analysts” survey shows, some stock analysts managed to keep their clients’ heads above the water—mostly by telling clients when to sell.” Read More

In the news: Continue Progress on a Key Trade Relationship
Institution, John L. Thornton China Center, May 11, 2012
“The size and strength of the American economy has underpinned U.S. leadership in the world, and the long-term prospects for U.S. economic growth are essential for maintaining this role. The strength of the American economy also matters for U.S.-China economic relations.” Read More
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Economy

In the News: 'Dollar value has been manipulated':insider
Xinhua, May 15, 2012
“ The present US monetary system is an abysmal failure and the value of the dollar has been manipulated, according to a former Federal Reserve official.For the last 40 years in Washington, regulate has meant manipulate, with the Federal Reserve raising and lowering interest rates and buying and selling assets at its own discretion," Herman Cain, the former chairman of the Federal Reserve Bank of Kansas City.” Read more

Commentary: Move the Financial Stability Board’s Secretariat to Asia
by Nicolas Véron, May 10th, 2012
“On the face of it, the financial crisis of 2007-08 has helped rebalance the governance of global financial authorities, partially correcting the prior underrepresentation of emerging economies and of Asia in particular. From November 2008 to April 2009, when the G-7/G-8 was superseded by the G-20, the Financial Stability Board (FSB) was empowered and enlarged to include major non-Western economies, and discussions began on reconfiguring the governance.” Read More
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