Middle East Notes and Comment
July 1, 2008
"If China is winning, the United States must be losing.” That is precisely the principle that many Americans see at work not only in the world, but also in the Middle East. China’s surging manufacturing capacity has contributed to the steep decline in manufacturing jobs in the United States. U.S. businessmen worry about the consequences of Chinese firms taking over U.S. firms such as Unocal and 3Com and scuttle the deals. U.S. bankers agonize over China’s massive current accounts surpluses and its huge dollar holdings. Many perceive China to be a military threat too, expanding its reach in the Pacific and threatening the Pax Americana that has been in force there for decades.