U.S. policy changes needed to achieve U.S. goals (3)
14:04, May 14, 2010
Simultaneously as the American financial crisis loomed in July 2008, China pegged the value of the RMB in order to facilitate economic stability and recovery. China will continue to move towards establishing market-oriented RMB exchange rates longer-term. But China will maintain a relatively stable RMB exchange rate needed to manage the financial crisis and to ensure its economic growth is steady rather than becoming uncontrollable, which would harm all nations.
Today, in dealing with the global financial and economic crises the positive, comprehensive and collaborative relationship that American policymakers seek with China cannot successfully compartmentalize confrontation and cooperation. Economic recovery and aligning China and America's long-term economic growth requires new American policies, which must be the new focus and result of the upcoming Strategic and Economic Dialogues.
New American policies are also required because China-US relations began a new era on September 16, 2008, when Federal Reserve Chairman Bernanke and Treasury Secretary Paulson abruptly informed world that the United States financial system would collapse unless the government stepped in to save insolvent America-based global banks, insurance companies and automakers. The emergency US$700 billion bailout revolutionized the American government's commitment to a market economy, by turning the American government into the largest shareholder subsidizing the commercial failure of formerly non-state-owned leading global American companies. The failed laissez-faire economic theory, which American policymakers still demand China adopt, has failed in the real world and been replaced by a new era of massive American government control of market forces.
John Milligan-Whyte is called the "new Edgar Snow" and the "21st century Kissinger" and is the only non-Chinese to be elected the winner of the Social Responsibility Award from the China Business Leaders Summit. John Milligan-Whyte and Dai Min are the executive producers and co-hosts of the Collaboration of Civilizations television series adapted by the eight books they wrote in the America-China Partnership Book Series published in English and Mandarin in 2009-2010 that created the "New School of America-China Relations." They founded the America-China Partnership Foundation and Forum in 2008 and the Center for America-China Partnership in 2005, which was recognized in 2009 as "the first American think tank to combine and integrate American and Chinese perspectives providing a complete answer for America and China's success in the 21st century."
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The articles in this column represent the author's views only. They do not represent opinions of People's Daily or People's Daily Online.
John Milligan-Whyte and Dai Min are the executive producers and co-hosts of the Collaboration of Civilizations television series adapted by the eight books they wrote in the America-China Partnership Book Series published in English and Mandarin in 2009-2010. They founded the America-China Partnership Foundation and Forum in 2008 and the Center for America-China Partnership in 2005. E-mail: info@CenterACP.com