The Great Debate
The United States and China have been searching for a new way to frame their relationship. President Barack Obama’s trip this week to Southeast Asia, the focus of much U.S-Chinese tension, reminds us that with new leadership now set in both countries, it is time for them to carry on with that important task.
In every U.S. presidential election, the major party candidates vie to see who can appear tougher on China. Once the election is over, however, the substance of U.S. policy toward China usually changes little and is far more pragmatic than the campaign rhetoric. There are ominous signs, though, that things could be different this time.
The U.S.-China tire dispute threatens to spill into other sectors and squeeze Chinese exporters’ already razor-thin margins further. It might seem mind-boggling to many that Chinese manufacturers are still hanging on to weak overseas markets even though the domestic economy looks much healthier and surely offers more potential.