Dealing with China

A recent article in New York Times complains that the US has only limited leverage on China. It is true and it is happening because the West and the US are incapable of playing hard ball. It is time for American and Western leaders to realize that China only understands and respects power play. Thus America’s weapon sale to Taiwan was a move in the right direction and despite all the whining by China, its message is understood by the Chinese dictators.

America and the West must also force China to float its currency at the market rate. It is ridiculous that despite a $2 trillion dollars of foreign currency reserve, Chinese currency is still allowed to be pegged to US dollar at an artificially low rate determined by China. There will a lot of support for this action in the world as by keeping its currency artificially low, China is hurting the economies of many other countries. If China refuses to do so, there should be a world wide boycott of products made in China.

Don’t worry about China overplaying its. China knows that militarily it is not as strong as America right now. Unless America and West wake up now, in another ten year their hands will be a lot weaker in confronting a militarily equally strong China. The time to tame this Dragon is now.
It is ridiculous that despite a $2 trillion dollars of foreign currency reserve, Chinese currency is still allowed to be pegged to US dollar at an artificially low rate determined by China. America and the West should stand up and force China to float it’s currency at the market rate and if China refuses to do so, there should be a world wide boycott of products made in China.