Thursday, June 26, 2008

Dr. Hadar on US/China Strategic Economic Dialogue (SED)

Leon Hadar's article for Business Times takes a look at US trade arrangements with China over the next ten years. As you read, reflect on which presidential candidate's "style" might win more points for America in the long run. No, the president doesn't have a chair at the table, but you can be sure he has input. Read between the lines. the aftermath of Iraq and Katrina, the sub-prime mortgage mess and the financial crunch, Americans are recognising that they are not in a position to lecture the Chinese on how to manage their economic system, or indeed, confront any other domestic and foreign policy issue.
American critics of the SED have been displeased that the nature of the forum tends to be deliberative instead of confrontational. But these critics should recognise that their confrontational approach towards China has failed to produce any progress in resolving some of the legitimate US complaints about Chinese trade and investment policies. Washington should face the reality that America's geo-strategic and geo-economic problems have eroded its ability to use threats to force the Chinese to change their economic policies. The process introduced through the SED forum seems to be the more realistic way to try to advance common US and Chinese interests.

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