One more viewing tip on the 'Chimerica' tape (updated)

As a reminder: sooner or later the full video of the "Chimerica" discussion between Niall Ferguson and me, this week at the Aspen Ideas Festival, will be posted at the Aspen site. (Previous mentions here and here.) If you see or read the full version, you will note that an absolutely fundamental premise in the argument (Ferguson's) for the inevitable collision of US and Chinese interests is that the Chinese leadership has recently lost all faith in the U.S. economy and the U.S. dollar and is determined to move away from the dollar as an international currency.

You will note too that statements by Chinese officials, taken strictly at face value, are the main pieces of evidence for this contention. In that regard, this latest statement by a senior Chinese official deserves notice: 
My argument, as you'll see, is that China and the United States will continue to disagree over countless issues but are too thoroughly connected to be pushed by the current world economic crisis toward what Ferguson declares a "divorce." If a real separation occurs, it would probably be over Taiwan or some other non-routine-economic issue.

Bear this statement from He Yafei (genuine influential official) in mind when you hear "academic discussions" about moves away from the dollar. And, as I've mentioned many times, if you're looking for an "academic" perspective on the Chinese economy and US-Chinese tensions that is based on its actual realities rather than sweeping generalizations, start here.
:  Thanks to Andy Rothman of CLSA in Shanghai for the reminder that one week ago, Zhou Xiaochuan, the People's Bank of China governor who touched off original speculation about China's move away from dollar holdings, declared that China would be making no sudden moves to change its currency holdings. Why this matters: the "impending breakup" thesis depends crucially on the idea that China is quickly and unstoppably undoing its links to the U.S. economy and U.S. holdings. 


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James Fallows is a national correspondent for The Atlantic and has written for the magazine since the late 1970s. He has reported extensively from outside the United States and once worked as President Carter's chief speechwriter. His latest book is China Airborne. More

James Fallows is based in Washington as a national correspondent for The Atlantic. He has worked for the magazine for nearly 30 years and in that time has also lived in Seattle, Berkeley, Austin, Tokyo, Kuala Lumpur, Shanghai, and Beijing. He was raised in Redlands, California, received his undergraduate degree in American history and literature from Harvard, and received a graduate degree in economics from Oxford as a Rhodes scholar. In addition to working for The Atlantic, he has spent two years as chief White House speechwriter for Jimmy Carter, two years as the editor of US News & World Report, and six months as a program designer at Microsoft. He is an instrument-rated private pilot. He is also now the chair in U.S. media at the U.S. Studies Centre at the University of Sydney, in Australia.

Fallows has been a finalist for the National Magazine Award five times and has won once; he has also won the American Book Award for nonfiction and a N.Y. Emmy award for the documentary series Doing Business in China. He was the founding chairman of the New America Foundation. His recent books Blind Into Baghdad (2006) and Postcards From Tomorrow Square (2009) are based on his writings for The Atlantic. His latest book is China Airborne. He is married to Deborah Fallows, author of the recent book Dreaming in Chinese. They have two married sons.

Fallows welcomes and frequently quotes from reader mail sent via the "Email" button below. Unless you specify otherwise, we consider any incoming mail available for possible quotation -- but not with the sender's real name unless you explicitly state that it may be used. If you are wondering why Fallows does not use a "Comments" field below his posts, please see previous explanations here and here.


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