Issue#1 May 2006
Like the United States, China needs oil to fuel its economy, but with the United States now in a position of influence in Iraq, China has had to turn to countries such as Sudan and Iran to meet its needs – precisely when the Untied States has sought to isolate these nations.
While Western companies see China as a potential market of one billion customers, there is a downside to the China trade: the U.S. deficit grew faster in the final months of 2005 than ever before, swelling to 7 percent of national income, with the balance of payments with China a key factor. Some U.S. and U.K. leaders call angrily for trade action against China unless it opens its markets and allows another revaluation of the yuan
When authoritarian states Decide to liberalize, which should they tackle first, the economy or the political realm? Many economists think that China’s approach has been more successful than Russia’s, as does historian and filmmaker Gerry Sperling.