This week we have been talking about the shift in global power and the ascendancy of China. There is no getting away from this fact – China will eventually overtake the U.S. as the largest economy – and both sides have to live with each other.
Nowhere can that be seen more clearly than the $1 trillion dollars in U.S. government debt owned by the Chinese.
The U.S. has needed the Chinese to fund its overspending and trade imbalance. The Chinese can't afford for the debt to become tainted by reckless U.S. deficits.
The two countries are stuck with each other – and that will become ever clearer in the years ahead. they are called the G2 – for one reason. Who needs who? They need each other.
This week's Q&A will tackle the speed of China's ascent: can they overtake the U.S. by as early as 2020?
Last week's Q&A - in case you missed it:
The Arab Economic and Development Summit was a venue for taking a longer term view on creating the conditions for pan-Arab integration and job creation. As a result of the Tunisian revolution - as many are labelling the groundswell for change – it quickly morphed into an emergency summit at the Red Sea resort of Sharm El Sheikh.
The secretary general of the Arab League used unusually blunt terms to jump-start a process that, candidly, has taken too long to gather traction.
“The issues causing the revolution in Tunisia are not far from the issue of this summit, which is economic and social development,” said Amr Moussa. “The Arab citizen has entered a stage of anger that is unprecedented.”
New York (CNN) – “We are very concerned that these companies are being financed by the Chinese government and are potentially subject to significant influence by the Chinese military.”
The accusation leveled against two Chinese telecoms firms – ZTE and Huawei – in a letter published by some U.S. lawmakers last October. It was designed to undermine a lucrative deal with a U.S. telecommunications company and illustrates the unease and suspicion still present as Chinese President Hu Jintao begins the last day of his high-profile visit to the U.S.
Today, ZTE – the world's fifth largest telecommunications equipment maker – is still pressing ahead with attempts to expand in the United States. But the experience has clearly left its mark on Lixin Cheng, the company’s CEO for North America.
“In the U.S., the fundamental principle is a free economy, free market and a free country,” he told CNN at the firm’s U.S. headquarters outside Dallas. ”Surprisingly I learned from the press that for some projects the government intervenes. I do not believe that should happen.”
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