Wong,
<<China's finance minister said Tuesday that Asia's financial crisis had put great pressure on China's economy, but he assured
Washington that Beijing would not devalue its currency. >>
And, in so doing, China earns an enormous increase in influence in the world economic theatre. IMO this, most assuredly, will put China squarely in the WTO. One has to wonder what card Japan will play in all this? They must realize that their influence in SE Asia is dwindling. And what of increasing trade imbalances in the U.S.? I suspect it is only a matter of time before Congress starts an uproar. This, will undoubtedly give further approbation to China's policies and at the expense to Japan. Is there a shift in global line up beginning here? One is encouraged by all this to watch closely the upcoming visit to China by Clinton and wonder what new initiatives may result.
But we must also recognize Japan's wherewithal to regain an important role in the recovery process if there is to be one. Here is a post Mike offered on the Asia Forum thread, presumably from the same article he has just mentioned here.
exchange2000.com
It seems to me that Japan and China both together may hold matching keys to the unraveling of the SE Asia economic crisis. China, turning their eyes inward to infrastructure and social programs to support growth opening the export path for the tiger countrys. Japan, if ever they move decisively on tax reform and market reform, to spur consumption thus opening markets for the tigers and avoiding an increase to the huge trade imbalance with the U.S. Caution: all of the above are just the ramblings of an overworked ex-pat with no particular claim to any knowledge about the subject.
Best,
Stitch
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