Li Daokui, director of the Center for China in the World Economy at Tsinghua University in Beijing and adviser to the China’s Central Bank, claims that the US and the West have not lost their dominance in the world.

Li Daokui

The United States needs China for two simple reasons: China can make a difference in the world after the financial crisis, and more importantly China’s fundamental interests are aligned with the United States.

It is obvious that China can make a difference in the world today and tomorrow. China is the world’s leading exporter of manufactured goods. A sudden appreciation of its currency would inevitably export inflation to the rest of the world, which is not welcome by American families struggling to find jobs. China holds the world’s largest currency reserves, enough to buy up the share prices in New York or sell down the yield curve of the T-bond. Read more…

As published in http://edition.cnn.com