You need to elaborate on “back off.” But most people who been to China within the past decade have seen a rapid change and development in their economy that you are referring to. [/quote]
From the Taiwan issue. China should get her own house in order, and sort out state industries, the moribound banking system, and the lack of representative government. But bullying Taiwan and blaming the US is so much easier.
Uhm, PRC address reign in their loans to real estate development last year to slow their economy. S&L? You’re comparing a deregulation issue in the USA with the PRC growing economy based on infrastructure development. Please elaborate I don’t see the connection.[/quote]
In that case, you might want ti invest in a pair of glasses.
The S&L scandal was caused by a large number of real estate owners (homes & commercial) defaulting on their loans, thus pushing a whole part of the US financial system into insomvency. It was dealt with very fast.
The Chinese banking system scandal is caused by politically motivated lending to bankrupt state owned enterprises, thus squandering the savings of tens of millions of Chinese. There has been a few half-baked attempth to solve the problem, but given the fact that the Chinese banking system is controlled by the government, they have not solved the problem, but instead allowed it to grow.
Therefore US insolvent S&L = Chinese insolvent banking system.
That should be simple enough for you to understand.
I think the author wasn’t talking explicitly about the PRC export economy. His focus was there were various example of PRC expanding trade interest in the world and how USA is not taking the lead in Asia, SE Asia, and Iran. Yet USA has not changed its foreign policy in Asia due to pre-occupation in the middle east, which might lead to a disaster for the USA, if they are not careful about old Japan-Sino rivalry that might result in war. [/quote]
The PRC economy is export-driven. Therefore, nothing is possible for the PRC if they get cut out from their markets in the US and Europe. Also, Japan is a large customer.
Adding… So far I can see, Japan has not embarked on any aggressive moved toward China, all the aggression is on the Chinese part.
Also, the fool writing the piece - economist, and not really a sinologist per se - did not suggest any alternatives, but just took a bunch of poorly thought out crapshots at USA and Japan.