China and US: Tire-d of Fighting

China and the US seem like Siamese twins that hate each other – joined at the hip by trade but pushed apart by issues as diverse as human rights, climate change, and security. The current financial crisis makes some believe focus on trade may take center stage. Gady Epstein from Forbes argues that the decision by President Obama over the influx of cheap Chinese tires reflects the deepening interests between the two giants. Arguing that “neither side wants to spend too much political capital on one issue,” Epstein also asserts that the US public has too long blamed China for a simple “fact” of a global labor market: manufacturers can move to any number of countries to find low wage labor, and would do so if the US were to target Chinese goods for high tariffs. As the consequences of globalization forge a more nuanced relationship between the US and China, each new sticking point is likely to be dispensed with pragmatically to prepare room to tackle the next big issue. – YaleGlobal