Simon Smelt

China-U.S. Ties: Recovery Without Rebalancing

The deep level of commitment between China and the U.S. you suggest requires China to trust the U.S. but not vice versa. China sells goods to the U.S. and loans money to the U.S. In return, the U.S. promises that in the future it will not default or inflate away the value of its debt to China. U.S. gets stuff now. China gets promises. And how many votes for U.S. politicians in imposing harsh domestic policies in order to fulfill those promises?