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Sources Of Tension Between China And US

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Posted by Majano Luis on March 10, 2010 at 6:21 am

US Secretary of State Hillary Clinton called for China and other autocratic governments to put restrictions on citizens’ use of the Internet, warning to provoke earlier uneasy ties with Beijing.

Both the two giant nations are popular economically. The major sources of tension between them are:

Currency and debt: The United States complains that China maintains its currency undervalued using artificial means, thus illegally helping exporters. China has confidentially pegged the yuan to the dollar since mid-2008, this made its currency weakened compared other trade partners as the value of the dollar fall.

Trade and investment: A World Trade Organization panel is evaluating US duties on Chinese trade, after the United States initially charged security duties on China after it agreed to join the WTO. Other trade disagreement is concentrated around steel products, poultry, Chinese tariffs on raw materials exports, and quality and safety tasks over Chinese food, toys and other goods which Chinese manufacturers looks as a perspective of protectionism.

Diplomatic and military influence: As China has evolved as the world’s third largest economy it is acquiring higher power, especially in Asia and Africa. It is also increasing its military and space capability, and Washington asked Beijing to be more open regarding its defense spending and strategic objectives.

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