China Succeeds, While Asia Suffers
The United States may view China as a military threat and a human rights criminal, but it is also a key economic ally, especially now that Asia is in financial crisis.
CBS News Correspondent Anthony Mason reports that to that end, China's ability to hold its currency steady has provided a firewall against Asia's financial collapse. And today, that won the Chinese an accolade from the White House.
"I appreciate the very constructive role China has played in promoting financial stability in the region," President Clinton said.
While Asia is caught in financial turmoil, China has managed to prosper. Edward Graham, a researcher for the Institute for International Economics says China's sustained growth has helped push it ahead of its neighbors, making China an even more attractive partner for trade.
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| CBS.com reports on President Clinton's trip to China |
"Growth has stopped throughout much of Asia, whereas China continues to grow quite rapidly. So just by simple arithmetic, the Chinese economy is of growing importance relative to the rest of Asia," Graham said.
That's brought American companies calling. Boeing is just one example. The aerospace giant has said it expects China to spend $125 billion on new airplanes over the next two decades.
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That kind of spending power, according to Treasury Secretary Robert Rubin, has China on course to becoming the world's largest economy. But how fast?
"At present rates, it would be more than 10 years, at least 20, but that in the sweep of history is not very long at all," Graham said.
So while the U.S. works hard to bail out its traditional trading partner, Japan, China seems content to play a waiting game for its turn as the driver of the global economy.