Do the Chinese want to Sell Short…America?

Published on Author rhynem14


Obviously the U.S. government’s shutdown is causing tension and concern across the globe. It’s a rare and momentous event. While it may seem drastic, a Xinhua writer presents an argument for “de-Americanizing” the world.Note 1 Could this shutdown be the beginning of a huge shift in world culture? The article’s author comments,

“Instead of honoring its duties as a responsible leading power, a self-serving Washington has abused its superpower status and introduced even more chaos into the world by shifting financial risks overseas, instigating regional tensions amid territorial disputes, and fighting unwarranted wars under the cover of outright lies.”1

These are aggressive allegations. However, the Wall Street Journal points out that the Chinese are yet to oppose American involvement in getting their students into Harvard, handing them profits via Iron Man movies, etc.2 A huge chunk of China’s $3.66 trillion of foreign-exchange reserves are in U.S. dollars. Are they really considering dropping that by any significant margin? Ultimately the article’s author just wants the United States to play a more constructive role in the world’s issues. It simply chose a “pax-Americana” stance to illustrate its point.



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One Response to Do the Chinese want to Sell Short…America?

  1. I think there has already been a significant shift in world power. Many academics have increasingly focused on the potential of a global shift from the United States as the clear center to a bipolar world, characterized by both China and the US driving global policy. Before that can happen, China may need to make significant strides in liberalizing its economy to outside countries if it intends on carrying as much weight as the US in global policy initiatives. Although its currency has been steadily appreciating to its natural rate, it is by no means on account of a free float policy. The world is still dependent on the dollar as a reserve currency and the US treasury market as a safe-haven security. Unfortunately, Washington is doing its best to self-inflict the end to the aforementioned safe-haven and reserve era. Unambiguously, China and other countries are justly complaining about the undue financial distress that the US is and will cause if the issue is not resolved.
    Although the US is presently the clear superpower and the medium-term may experience a bipolar world, there are a few other countries that are rapidly emerging as powers that will increasingly direct global policy and prove individual catalysts for a “de-Americanization.” Jim O’neill has aptly appointed the BRICs as some of the most fundamental investment opportunities. His theory is based almost entirely on a long-run perspective of how these four countries—embodying approximately 3/7 of the global population—will realize rapid economic expansion as their labor force becomes increasingly productive. The countries are forecasted to overtake many of the current “developed markets,” on a GDP basis, that have been long thought of as the global leaders. When the BRICs do achieve this over the next few decades, the entire global outlook will be different, emphasizing a significant de-Americanization.