Dec 29 2008
China/U.S. relations waning
So we have yet another scary situation brewing now, as U.S. officials are blaming the recession for waning relationships with China.
“The American economic slump is running into the Chinese economic slump,” says Derek Scissors, a research fellow at the Washington-based Heritage Foundation. “It’s creating the conditions for a face-off between Beijing and the U.S. Congress, possibly leading to destabilization of the world’s most important bilateral economic relationship.”
Why is this so scary? Because as this site had pointed out previously, we owe China a boatload of money. To the tune of over half a trillion dollars. Until now the growing country has been willing to invest in the United State’s national debt (see it on the right side of my blog, constantly going up) but China’s exports fell for the first time in seven years. Many signs seem to point towards the Chinese not being so gracious in the future. I wonder how president-elect Barack Obama will handle this situation when he takes office on January 20th.
More on this story later.
