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Dr. Yukon Huang a 46 SECURITY POLICY 90 Competition Matters: China’S Exchange Rate and Balance of Trade, Dr contentssummer 2012 70 China - the Next Superpower? (Student 14 CHINA’S WORLDVIEW Writing Award Winner), Roy Dale AND AMBITIONS A74 THE EXCHANGE RATE 16 Norms, Values and Exceptionalism in China’s World View, Prof. William A. CONUNDRUM Callahan 76 The Chinese Yuan - US Dollar Exchange 21 China and Inner Asia: New Frontiers Rate: What Are the Issues?, Prof. Richard T. and New Challenges, Dr. David Kerr Froyen 29 China, Asia, and the ‘American Pivot’, 80 Internationalization of the Renminbi: Prof. Lowell Dittmer What Does History Tell Us About the Precedents?, Dr. Jeffrey Frankel 37 What China Wants in Asia: 1975 or 1908?, Dr. Anis H. Bajrektarevic 83 The New Trading Band and Its Repurcussions, Interview with Hon. Delio 40 China - Getting Ahead or Losing E. Gianturco Ground? (Student Writing Award Winner), Abhismita Sen 86 America’s Hammering China’s Rmb Makes Little Sense, Dr. Yukon Huang A 46 SECURITY POLICY 90 Competition Matters: China’s Exchange Rate and Balance of Trade, Dr. Anwar 48 Chinese Foreign Policy - Interpreting the Shaikh Recent War of Words, Dr. Carla P. Freeman 93 Slow Float to China, George A. Pieler, 53 The Challenge of US-China Relations, Jens F. Laurson Dr. Ali Wyne 97 Chinese Exchange Rate, the US Account 58 China’s Security Policy in Africa and Deficit, and the Global Imbalance, Dr. the Western Indian Ocean, Amb. David H. Jinzhao Chen, Dr. Xingwang Qian Shinn 103 US-China Problems: Is Revaluation of 62 The Growing Potency of the Sino-Indian the Yuan the Solution?, Dr. Haider Khan Rivalry, Dr. Harsh Pant 107 How to Deal With The Chinese 66 Stealth Fighters are Hard Exchange Rate, Dr. David Phillips (Modernization of China’s Aerial Arsenal Encounters Obstacles), David Axe The DiscussingFO InternationalRUM Affairs and Economics Printed in the U.S.A. A publication of the Center for International Relations 933 N. Kenmore St. #222, Arlington, VA 22201 703/532-6800 fax: 703/532-6890 email: [email protected] Managing Editor Dr. Dale Mineshima-Lowe We want to hear your thoughts Send Editorials and Essays to [email protected] For advertising inquiries, contact us at [email protected] m u r o F www.ia-forum.org e h T ABOUT THE FORUM The Forum is a publication of the International Affairs Forum online journal. Inside each issue you’ll find interviews, editorials, and short essays from academics and practitioners, presenting a wide spectrum of views and from around the globe. In this way, we wish to provide readers with an all-partisan, international look at today’s major issues, and tap into the research and views of major thinkers and actors in the field within the ‘space’ between social science journalism and academic scholarship. That is, we look for carefully considered contributions that can nevertheless be published relatively quickly and which can therefore maintain the impetus of current thinking but which do not require detailed peer review. The extent of our review is therefore largely a matter of informed editorship. We think that this is a valuable approach to extending informed opinion on policy in the international sphere. Another feature of each issue is recognizing winners of our Student Writing Competition Program by publishing their efforts. As part of our mission, we strive toward providing a platform for students to take next steps toward successful professional careers and as such, believe exceptioanal work should be recognized, regardless of experience level. The program is open to all college students around the world. We hope you enjoy this issue on China and encourage feedback about it, as it relates to a specific piece or as a whole. Please send us your comments to [email protected]. S u m m e r 2 0 1 1 5 The Forum Contributors David Axe is an American military correspondent who writes widely on military life and aspects of current conflicts. He is a regular contributor to Wired.com, The Diplomat and other publications. He blogs at Wired’s Danger Room and at his own blog at www.warisboring.com. Dr. Anis H. Bajrektarevic is Professor and Chairperson at the International Law & Global Political Studies, University of Applied Sciences IMC-Krems. Prof Bajrektarevic is also Acting Deputy Director of Studies EXPORT EU-ASEAN-NAFTA. He has authored numerous publications and consulted with the Foreign Policy Institute of the Johns Hopkins SAIS, the Malaysian Trade Chamber, the Council of Europe, and the American Bar Association. Professor William A. Callahan is Chair in International Politics and China Studies, Research Director, Centre for Chinese Studies, and Co-Director, British Inter-university China Centre at The University of Manchester. He is author of China: The Pessoptimist Nation (OUP, 2010), Contingent States: Greater China and Transnational Relations (Minnesota, 2004), and Cultural Governance and Resistance in Pacific Asia (Routledge, 2006). Prof. Callahan has published articles in many journals, including International Organization, Public Culture, Asian Survey, International Studies Quarterly and the Journal of Strategic Studies. S u m m e r 2 0 1 1 7 Dr. Jinzhao Chen is post-doctoral researcher at Paris School of Economics. His research focuses on Chinese exchange rate and capital controls, international financial integration, and economic growth. Dr. Lowell Dittmer is Professor at the Charles and Loise Travers Department of Political Science, University of California, Berkeley. His scholarly expertise is the study of contemporary China. He teaches courses on contemporary China, Northeast Asia, and the Pacific Rim. His current research interests include a study of the impact of reform on Chinese Communist authority, a survey of patterns of informal politics in East Asia, and a project on the China- Taiwan-US triangle in the context of East Asian regional politics. Professor Dittmer’s recently published books and monographs include Sino-Soviet Normalization and Its International Implications(University of Washington Press, 1992), China’s Quest for National Identity (with Samuel Kim, Cornell University Press, 1993), China Under Modernization(Westview Press, 1994), and South Asia’s Nuclear Crisis (M. E. Sharpe, 2005). Dr. Jeffrey Frankel is James W. Harpel Professor of Capital Formation and Growth. He directs the Program in International Finance and Macroeconomics at the National Bureau of Economic Research, where he is also on the Business Cycle Dating Committee, which officially declares recessions. He served at the Council of Economic Advisers in 1983-84 and 1996-99;as CEA Member in the Clinton Administration, Frankel’s responsibilities included international economics, macroeconomics, and the environment. Dr. Carla P. Freeman is Associate Director of the China Studies Program; Associate Research Professor; Foreign Policy Institute Executive Director at Johns Hopkins University, The Paul H. Nitze School of International Advanced International Studies (SAIS). She is co-author of China on the Edge: China’s Border Provinces and Chinese Security Policy, co-author (2011); Managing Fragile Regions: Method and Application, co-editor (2010); and numerous journal articles, papers and reviews m u r o F e h T Contributors Dr. Richard Froyen is a Professor of Economics at the University of North Carolina. He has been a visiting economist at the Board of Governors of the Federal Reserve, a Visiting Professor at the University of Leeds (U.K.), and an Erskine Fellow at the University of Canterbury (N.Z.). Professor Froyen is the author of Macroeconomics: Theories and Policies, and of articles on macroeconomics and monetary policy in various economic journals. The Hon. Delio E. Gianturco is adjunct professor at George Mason University and a specialist in international finance, trade develop- ment, foreign direct investment, and microeconomics. Mr. Gianturco served in the U.S. government during 6 different Administrations and was a Presidential appointee, confirmed by the Senate. Dr. Yukon Huang is a senior associate at the Carnegie Endowment. Pre- viously he was the World Bank’s country director for China; and Russia and the former Soviet Union Republics of Central Asia. Earlier he served as lead economist for Asia and chief for Country Assistance Strategies. He has also held positions at the U.S. Treasury and various universities in the United States, Tanzania, and Malaysia. Dr. Huang has published widely on development issues and is an adviser to the World Bank and the Asian Development Bank, as well as various governments and com- panies. S u m m e r 2 0 1 1 9 Dr. David Kerr is Director of Durham University’s Centre for Contemporary Chinese Studies, and Lecturer in the International Relations of China. He joined Durham University in 2002 after studying and teaching at the University of Glasgow. In 2009-10 he served as specialist adviser to the UK House of Lords inquiry into European Union-China relations. Dr. Haider Khan is Professor at the Korbel School of International Studies, University of Denver. His areas of research include environment, foreign aid, trade an investment and economy-wide modeling. Dr. Khans publications include Macroeconomic Effects and Diffusion of Alternative Technologies Within a Social Accounting Matrix Framework: the Case of Indonesia and Foreign Aid, Taxes and Public Investment, and Macroeconomic Effects of Technology Choice: Multiplier and Structural Path Analysis. Jens F. Laurson is the co-founder and Editor-at-Large of the Center for International Relations’ International Affairs Forum. As a journalist, author, translator, and classical music critic he has written on politics, economics, and culture for several publications, including Forbes, Wall Street Journal, Washington Post, Washington Times, Classical WETA 90.9 et al. m u r o F e h T 10 Contributors Dr. Harsh Pant teaches at King’s College London in the Department of Defence Studies. He is also an associate with the King’s Centre for Science and Security Studies and an affiliate with the King’s India Institute.
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