Saturday, June 25, 2011

Growing US-China Tension

Tug-of-interest between the United States and the People's Republic of China in Asia continues to rise. The tension of two giants could adversely affect regional geopolitics. However, the US-China tensions become a golden opportunity if countries in the region are able to expand its influence and do not depend on the interests of both countries.
'US-China relations in the future are uncertain and very challenging. But that does not mean there is no chance. It is just a golden opportunity because we can extend not only to leverage the U.S. and China, but also other regions,' said James T Riady, chief executive officer (CEO) of Lippo Group, during discussion of The G2 Impact on Asia in the event of the World Economic Forum (WEF) on East Asia in Jakarta, on 12 June.
According to James Riady, the countries in Asia could expand its influence (leverage) -- in form of business to business (B to B) to other countries in the Association of South East Asian Nations (ASEAN).
'This is to maintain the geopolitical balance in order not to be too dependent on the G2 (US-China). It is also important to make G2 not over-confidence and not only taking profit from Asia. In contrast, G2 learn to 'give' to this region,' said James.
Market Distortion
James Riady said: 'China and India participated in the shift, including 500 million middle-class individuals in it. There is a tremendous shift due to the free market. This creates market distortions, creates a term of G2 which often only make a profit, not give,' he said.
James added, current Asian economic situation is much better than the 1998 economic crisis. But the other side, now emerging crisis due to the US-China relations.
Yang Xiyu, a senior fellow at the China Institute of International Studies confessed worry that deteriorating relations G2 lately become a geopolitical threat in Asia. 'In geopolitics, there is a degree of uncertainty related to the US-China threat. There is bad competition. Each wants to maintain its interest in getting maximum profit in region,' he said.
Nevertheless, added Yang Xiyu, there will positive bilateral relations if G2 is able to work well together and effectively. 'If not, confrontational relation style will be created,' he asserted.
Previously, it was mentioned that emergence of China as new force is closely related to premises era of globalization which has three main trends, namely a shift in innovation, technology, and expertise from the Atlantic to the Pacific.
Yang Xiyu expected that China's attitude toward globalization is independent and interdependent or ready to compromise. It is ease to cooperate widely.
Role of Japan and South Korea
John Ehara, partner and representative director at Unison Capital (Japan), suggests, the concept of globalization has encouraged China continues to advance and become a significant trading partner for Japan. In fact, there is inequality of trade relations. Japanese firms constrained to grow in China.
In contrast, Chinese companies are very expansive in Japan. However, elements of the United States also still have significant effect on Japan. It eventually became big issue in the country.
Oh Joon, South Korea's ambassador to Singapore, said China also became the largest trading partner for his country. 'The question that often arises, how this cooperation is associated with South Korea and the United States?,' he said.
Joon believes China has actually practiced the capitalist economic system, not much different from what is already applied to the United States. Thus, good relationship between the United States and China will create significant economic synergies and huge benefit, both for G2 as well as for other countries in the region.

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