The Chinese And American Trade Dispute Is Still Controllable

America and China's relation in the economic problems still belonged to the disputes which might be managed but not the comprehensive conflict.

In US's presidential year, globalized politics is thorny throughout. Last month American President Barack Obama in the lectures of the strong State of the Union, enhanced the criticism decibel to China's unfair deal procedure. Barack Obama pledged to take vigorous action to force the Beijing government make changes in the exchange rate operation, the intellectual property rights protection and issuing the government subsidies. The criticism sounded strong. It seems that the American government tends to put pressure on the Chinese government to affect its decision-making, especially in the economic field.

However, the actual situation is further intensifying the American trade politics characteristic that has already been serious, that is to bark a lot while to seldom to nip. The Chinese government has learnt to be calm and watch the development of the international situation on hearing the however loud voice of criticism from the United States. The trade experts indicated that, the Washington usually had difficulty in finding an ally to help it to exert pressure to China, but Beijing aspect had been more and more clear of this limitation. Unless more countries would utter their voice in the same tone, the criticism will be fruitless.

China does not like to be isolated on the international stage, but day by day, it has learnt to treat two pressures differently. One kind is the unilateral motion which is very likely to let it go at that, and another kind action may possibly causes the joint exertion of pressure , said Eswar Prasad, a former high-ranking official of International Monetary Fund (IMF). He has now carried out the cooperation with several emerging market national government in Washington Brookings Institution.

Prasad indicated that, the United States Congresss endless threat on the punishment on China for underestimating Renminbi was losing the power to trigger shock. With time passing by, it seems that the Chinese government has been kind of accustomed to the criticism from the United States.

The American economy transfers to be strong unceasingly, and the unemployment rate drops. Simultaneously the capital inflow into China has becoming slower last year, and all these have weakened the argument that Chinese intervention with Renminbi exchange rate has been conducted partially at the cost of the American employment. Obama Government has also lost confidence in organizing the G20 leading economies to rally together to oppose the Chinese exchange rate policy.

by: jessicaaugus

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