Asia & the Pacific

"China narrowed the gap in terms of gross domestic product (GDP) and will likely overtake the United States as the world's largest economy sometime between 2015 and 2040. What matters for national power, however, is not gross wealth, but net wealth—the wealth left over after people are clothed and fed. China's 1.3 billion people produce a large volume of output, but they also consume most of it immediately, leaving little left over for national purposes."

"Amid setbacks and chronic challenges in almost every major region, Washington views South Korea as a linchpin on a global scale. From hosting the G20 summit in 2010 to preparing to host the next Nuclear Security Summit in 2012, South Korea has been establishing itself as a global partner in addressing common challenges, ranging from rebalancing the international economy to preventing the use of nuclear materials for terrorist attacks. For President Lee, the state visit is an important opportunity to demonstrate South Korea’s unique role as a bridge between the developed and developing countries."

A higher Renminbi will have two advantages: for the United States, it will help to equilibrate the past trade imbalance; for China, it will stimulate consumption (and enhance imports). It will therefore help China switch from a purely exporting strategy to one that maintains domestic growth through internal consumption.  The goods that were to be sent abroad can now be consumed by an increasingly middle class nation at home.  These steps will bring China and the United States closer economically and increase international stability. However, unless the military-security relations of the two countries improve, this will not be a sufficient remedy for the two nations' long term problems.

There is no endemic reason for Russian-U.S. relations to be as tense as they have become over the past several years. Th is situation is largely due, on one side, to mishandling of Russian affairs by both the Clinton and Bush administrations, and on the other by the obvious manipulation of anti-Americanism for domestic gain by the Vladimir Putin and Dmitry Medvedev administrations in Russia. Unfortunately, this means that only unilateral U.S. action can undermine the cynical policies of the Russian leadership and restore dynamism to the Russian-U.S. relationship.