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U.S.-China Tensions: Co-Dependency Pains

EXECUTIVE SUMMARY

The fault lines in the U.S.-China relationship have been increasingly exposed in recent weeks, with rhetorical barbs exchanged on trade, the treatment of foreign companies in China, strategic issues such as U.S. support of Taiwan and Tibet’s Dalai Lama, responses to Iran’s nuclear ambitions and especially exchange rates. Domestic pressure in the U.S. congress on the need for action with regard to the pegged renminbi (RMB) is growing. Chinese leaders, including Premier Wen Jiabao, have recently hit back at the U.S. for what they characterize as interference in[...]

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