From Council on Foreign Relations website:
The Chinese economic boom could change the global order and lift Beijing above Washington in economic might and influence. The United States is worried about China’s tactic of undervaluing its currency to boost exports, but Beijing has resisted repeated calls to raise the yuan’s value.
The result has been a boost for U.S. consumers buying low-cost Chinese goods, as well as what some say is a severe trade imbalance. In addition, the overheating of the Chinese economy would have worldwide repercussions. The U.S. Congress has entertained threats of trade retaliation, but administration policymakers have adopted a more cautious approach.
Stephen Roach, chief economist and director of global economic analysis at Morgan Stanley, and Desmond Lachman of the American Enterprise Institute debate the seriousness of the challenge posed by China and appropriate steps to respond to its rise. [Full Text]
