Rebalancing Relations with China by Dr. Henry Kissinger

Washington Post, August 19, 2009 on page A15 Former Secretary of State published an insightful article for reader's reference: Please read the following to stay informed about Sino-American Economics for knowledge and wisdom in the 21st century. To wit: -

"For decades, the global economic system was sustained by American predominance. America's appetite for consumer goods (with less cost) had sent enormous amounts of dollars to China and China lent back to us for more buying. China finds itself obliged to largely retain its Treasury holdings of nearly $1 trillion."

Such is the legacy of Confucianism of friendship as I have envisioned for years.

"China has a growing interst in reducing its dependence on American decisions. (Both USA and China are sovereign nations and both are permanent members of the Security Council of the United Nations) Since American inflation as well as deflation have become for China nightmares as grave as they are for America, the two nations face the imperative of coordinating their economic policies. (Perhaps humanpower policy apropos of training and retraining of the skilled labor would be a case in point. Cf."Keys for Economic Understanding. Cf.www.Amazon.com book category for reference.) As America's largest creditor, China has a degree of economic leverage unprecedented in the US experience." It is high time for Americans to be aware such economic realities in the 21st century.

"While the center of gravity of international affairs shifts to Asia and America finds a new role distinct from hegemony yet compatible with leadership, we need a vision of a Pacific structure based on close cooperation between America and China(as I stated in my prior blogs) but also broad enough to enable other nations bordering the Pacific to fulfill their aspirations.

I agree with Henry Kissinger's views in toto and this article is an updated version of Minxin PEI's article,published by "Foreign Policy" July/August issue 2009 that I commented several days ago in my blogs for understanding Sino-American Economics.

Henry Kissinger was a Consultant at the RAND Corporation in 1964-65 while I was a member of the research staff in the Department of Economics,1964-1965. Economist Richard Moorsteen published "Remaking China Policy" Harvard University Press, 1971 with his vision. Perhaps "A Glimpse of the Chinese Language"( published in 1965 on page 8 urging China to join the international community) would be another vision by a lifelong student of economics. Such visions are realized after several decades re empirical evidence.

Wednesday, August 19, 2009 at 9.42 a.m.