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Time for a More Equal Economic Partnership Between the U.S. and China?

November 16th, 2008 7 comments

Since China opened to the world some 30 years ago, China has witnessed unprecedented economic development and growth.  However, the economic relationship China has with the West has been a decidedly subservient one.

In the global economy, China would specialize in making high volume, low cost products in return for high value technology and services from the West.  The profit that China makes would be recycled back to the West (especially the U.S.) in the form of loans / credits.  Despite the recent global financial crisis, I do not expect this basic pattern to change any time soon.

However, the time for some change may be afoot.  For one thing, many economists in the West now seem to be more willing to acknowledge that the Chinese economic growth may be sustainable for the long term.  Even the Economist has been showing more confidence and optimism for China as of late. Read more…