As a debtor nation, America has fewer options in dealing with China

Few issues between the United States and China are as fraught as their co-dependent financial arrangements.

Holding more than $1 trillion in U.S. debt, China is America's biggest banker. But China is worried about America's ability to meet its obligations, and all of Asia is concerned about the shaky U.S. dollar.

“There are a lot of concerns here that persist in terms of the Chinese taking away our jobs and owning all of our Treasury bonds,” said Bonnie Glaser, Freeman chairwoman in Chinese studies at the Center for Strategic and International Studies.

With a certain amount of paranoia on both sides, President Obama sits down with Chinese counterpart Hu Jintao next week for a bilateral meeting and dinner in Beijing that are not expected to produce much in terms of substantive progress.

But with the two countries' economic fates increasingly intertwined, maintaining an open and direct dialog is essential, said Jeffrey Bader, senior director for Asian Affairs on the National Security Council.

“We know that building a durable and stable relationship with China, the most dramatically rising power of this century, will be neither straightforward nor simple and will require both toughness and adaptability on our part,” Bader said. “Trust and confidence will need to be built by word and action; they cannot be assumed.”

jmason@washingtonexaminer.com

Just Posted

Giants, Yastrzemski walk it off as Conner Menez, Zach Green star in debuts

San Francisco Giants debut two rookies who play major roles in third extra-inning win over Mets

SF to shut down 82 oil wells on Kern County property

‘Keep It in the Ground’ legislation prohibits the extraction of oil, gas and minerals from city land

Central Subway contractor dispute threatens to bust budget

Muni’s $1.6 billion Central Subway project is nearly out of money. An… Continue reading

Lyft rolls out new rental bikes

San Francisco welcomed 2,400 electric-assist rental bikes on its streets Friday morning… Continue reading

Navigation Center opponents’ lawsuit sent back to SF

Judge declines to issue immediate injunction stopping construction of Embarcadero shelter

Most Read