Washington Report, 2007-07

Publication Date: July 2007

Publisher: East-West Center; U.S. Asia Pacific Council

Author(s): U.S. Asia Pacific Council

Research Area: Economics; Government

Type: Newsletter

Coverage: China

Abstract:

Congress is poised to pass legislation aimed at rectifying the massive, $232.5 billion U.S.-China trade deficit primarily by imposing trade sanctions on China over its undervalued currency (see article below). Not a few experts have argued that this approach would have little impact on the bilateral economic imbalance. Even more worrisome, they have warned, is the prospect that such legislation would spark a damaging cycle of sanctions and counter-sanctions—a scenario that ultimately would harm both countries and negatively affect the global economy. Former Chairman of the House Subcommittee on Asian and Pacific Affairs Jim Leach examines current challenges in U.S.-China relations. He attributes the brewing crisis to difficulties both nations have in understanding the other's political system, changes in U.S. party politics, and public fears about globalization.

Washington Report is a bimonthly newsletter that provides an "inside-the-Beltway" perspective on developments in U.S.-Asia Pacific relations. The centerpiece of the report is an interview with a leading authority on an economic, political, and/or strategic issues of importance to transpacific relations.