Author: Nicholas Lardy, PIIE

The imminent rebalancing of China’s economy has been forecast repeatedly over the past several years.

With the shrinking of China’s external surplus during 2011, proponents of this argument have all but declared victory. Read more…

Author: Hugh White, ANU

Four months ago, as Australia’s parliamentarians rose to give President Barack Obama a standing ovation, it seemed they had already decided how best to navigate the profound strategic changes that must inevitably flow from the shift in relative economic weight from West to East.

Obama laid out in the starkest terms yet his determination that America will resist China’s challenge to US leadership in Asia, using all the elements of its power — including military force — to perpetuate a future for Asia framed by American values and interests. Read more…

Author: Kai Ito, ANU

Beijing has chosen to defy Washington’s embargo on Iranian oil.

While this does not bode well for putting an end to Iran’s uranium-enrichment program, the embargo also represents another worrying failure for US-China relations. Read more…

Author: Cheng Li, Brookings

Chinese Vice President Xi Jinping’s current visit to the United States is important to both nations, but for different reasons.

Xi is expected to soon take over from Hu Jintao as leader of the world’s most populous country and second-largest economy. Read more…

Author: Peter Drysdale, Editor, East Asia Forum

The debate about rebalancing China’s economy so that growth is driven more by domestic consumption than by investment and exports intensified with the onset of the global financial crisis.

China’s high level of net savings and external surpluses, and industrial-country reliance on the cheap international capital that accompanied them, was no longer sustainable. Read more…

Author: Yiping Huang, Peking University

The international community, and particularly policy makers in the United States, put great expectations on the contribution that China can make to global economic recovery by rebalancing its economy through promoting consumption growth.

The Chinese authorities broadly accept this priority and have put in place a number of policy measures that aim to achieve it. Read more…

Author: Matthew Hulbert, EER

This year presents a new set of challenges for Chinese energy endeavours, and nowhere more so than in oil.

Despite analysts bemoaning China’s ‘cavalier’ approach to risk as it strikes upstream deals in exotic locations, Beijing always knew it would have to cash in some of its chips when geopolitical cards were put on the table. Read more…

Author: Michel May, Waseda University

As bright as the future may seem for China, crucial reforms are needed in order to maintain its current rate of economic growth and prevent the Chinese economy from falling over like a house of cards.

Some of the most imminent challenges that China faces in the near future include environmental pollution, income inequality, uneven development between rural and coastal areas, and a risky financial system. The central government has already identified these problems, and reforms are now in place — including those contained within China’s twelfth five-year plan announced in March 2011. Read more…

Author: Geethanjali Nataraj, NCAER

As developed countries struggle to recover after the global recession and try to confront the looming sovereign debt crisis in Europe, big emerging markets are now driving global growth.

Given the slow down in developed countries, emerging economies are trying to boost domestic demand to sustain growth — and this is particularly the case in China. Read more…

Author: Zhang Yunling, CASS

Since China’s reform and opening-up policies began in the 1970s, the country’s average annual economic growth rate has hovered around 10 per cent.

Currently, China’s gross domestic product is second only to the United States; it is the world’s largest exporter and importer and the largest holder of foreign exchange reserves. Along with China’s remarkable economic rise comes an increase in China’s role in both regional and global development and governance. Read more…

Author: Peter Drysdale, Editor, East Asia Forum

China’s vice president, Xi Jinping, is set to make a hugely important visit to the US next week, prior to succeeding President Hu Jintao as China’s next president later this year.

The visit will set the stage for interaction between the next generation of Chinese leaders and American political leadership and help to shape how the most important bilateral relationship in the world will be managed over the medium-term future. Read more…

Author: Nicholas Lardy, PIIE

China’s 2009-10 stimulus program was quite successful: growth ticked down only slightly in 2009 while the rest of the world suffered its sharpest decline in 60 years.

But the stimulus program was not intended to address the longer-term structural problems that in 2007 led China’s premier, Wen Jiabao, to characterise the country’s growth as ‘unsteady, imbalanced, uncoordinated and unsustainable’. Read more…

Author: Sheryn Lee, ANU

On 14 January, Taiwan’s incumbent president, Ma Ying-jeou, won a second term in office, obtaining 51.6 per cent of the popular vote while Tsai Ing-wen, his Democratic Progressive Party (DPP) opponent, managed 45.6 per cent.

Ma’s party, the Kuomintang (KMT), thus retained control of the Legislative Yuan, securing 64 of the 113 seats. Read more…

Author: Choong Yong Ahn, Chung-Ang University

Since the fourth quarter of 2010, the global economy has faced serious uncertainty and a turbulent outlook.

Both the US and Europe have gloomy growth prospects due to a lack of credible medium-term plans for debt reduction in the US and the sovereign debt crisis in southern Europe. Read more…

Author: Evan A. Feigenbaum, CFR

The year 2011 proved fascinating for Asia, with the region consolidating its role as the essential player driving global economic recovery.

But 2012 promises to be more fraught as domestic politics take command amid new challenges to growth. A number of risks, opportunities and emerging patterns will shape Asia during the next 12 months and beyond. Read more…