Al-Jazeera reports today (17 November 2010) that the United States-China Economic and Security Review Commission has released a much anticipated report, which heavily criticized China in regards to economic and military issues. More specifically the panel accuses the PRC of undervaluing its currency, the Yuan Renmenbi, which the United States and the panel states it is the primary cause of the trade imbalances and the American trade deficit.
While the Chinese Government and its monetary and economic policies are partially responsible for the trade imbalance and growing American trade deficit, the American panel fails to see that problems in the US economy were primarily inflicted by internal forces and policies by successive American administrations rather than external players.
The panel also focuses its report on China’s military. While the panel has stated that China’s growing military is only a sign of a modernization, they state that China is not a military threat to the United States. However, it should be noted that the panel does point out that China has missiles that can reach American bases in East Asia and that the Chinese military has developed “anti-ship missile that can hit a moving ship a thousand miles off their coast”. These points should be evidence that United States and the panel believes that the Chinese military is a threat, contrary to the statement made by the panel.
It should be noted that historically, China has always sought to be a regional power and to protect its sovereignty from external threats. In addition to pointing out the contradiction, the points made by the panel actually provide evidence to China seeking to fulfill long historic goals rather than international dominance that the West often accuses it of.
To solve its problems, the United States should try to examine and fix its internal problems rather than blaming external forces for its misfortunes.