It may have been over with US and Russia but conflict between US and China seems to start to build up. This may sound like a Tom Clancy novel but the world seems to smell something out of Google’s announcement that they intend to pack-up in China in line with the recent attempt to hack their system. Same with China’s pronouncement that they don’t need to learn from US with regards to internet.
Google underestimate possible loss if they pack-up in China. But how important really is China to American economy, or perhaps the world? As to gathered report, Kristin Forbes said, “China is the West’s greatest hope and greatest fear.” Kristin was a former member of White House Council of Economic Advisers and one of hundreds of top officials and executives flocking to this winter resort for the annual World Economic Forum, which is taking place Wednesday through Sunday. “No one was quite ready for how fast China has emerged,” said Ms. Forbes, a professor at the Massachusetts Institute of Technology. “Now everyone is trying to understand what sort of China they will be dealing with.”
In the previous years, US dominate in spending. These days, Chinese spending are being eyed as the key to global recovery. China’s GDP could overtake that of the United States within a decade as per analysis of top economist. And as speculated, China’s currency renminbi could start to challenge the dollar as the world’s reserve currency if the trend continues. The renminbi, is frozen at an undervalued level, and Internet controls are stricter than ever — even as Google, one of America’s most prominent companies, threatens to leave. The severe recession has fast-forwarded history, catapulting an unprepared world into a period of uneasy cohabitation between the United States, the No. 1 economy, and its eventual successor.
US can no longer take for granted China as it is no longer emerging. It has already emerged or risen up.