U.S. Has Great Stake in Ensuring China's Global Emergence

Summary

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Yes, China is growing fast and buying global assets. And yes, its economy is going to be bigger than America's.

But this will not happen nearly as soon as most people think -- 2040 at the earliest and more likely 2050. In the meantime, rather than trying to block China's access to U.S. assets and markets, the task at hand is to craft, with China, an international system inclusive enough and flexible enough to enable China to grow and for the rest of the world to share the potential gains its economy has to offer.

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U.S. Has Great Stake in Ensuring China's Global Emergence

This hardly seems to be the spirit here in Washington these days. Anxieties about China's burgeoning economic might have been heightened by the sale of IBM's personal computing business to a Chinese firm and Chinese bids to buy American corporate icons such as Maytag and the oil company Unocal. Other worries have centered on the more than $700 billion of foreign exchange reserves China has piled up, much of it invested in U.S. Treasury bonds.

Yet these anxieties have more ...

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