There are Three Things China Still Fears About America. The Dollar is One of Them, by Mark Dittii

An insider who knows something about China speculates about the future of Chinese-American relations. From Mark Dittii at themarket.ch:

The Honorable Kevin Rudd, former Prime Minister of Australia and President of the Asia Society Policy Institute, warns of a progressive decoupling of China from the United States in fields such as trade, direct investment, technology and financial markets.

Few Western observers know China better than The Honorable Kevin Rudd. As a young diplomat, the Australian, who speaks fluent Mandarin, was stationed in Beijing in the 1980s. As Australia’s Prime Minister and then Foreign Minister from 2007 to 2012, he led his country through the delicate tension between its most important alliance partner (the USA) and its largest trading partner (China).

Today Mr. Rudd is President of the Asia Society Policy Institute in New York. In an in-depth conversation via Zoom, he explains why a fundamental competition has begun between the two great powers. He would not rule out a hot war: «We know from history that it is easy to start a conflict, but it is bloody hard to end it», he warns.

Mr. Rudd, the conflict between the U.S. and China has escalated significantly over the past three years. To what extent has that escalation been driven by the presence of two strongmen, i.e. Donald Trump and Xi Jinping?

The strategic competition between the two countries is the product of both structural and leadership factors. The structural factors are pretty plain, and that is the continuing change in the balance of power in military, economic, and technological terms. This has an impact on China’s perception of its ability to be more assertive in the region and the world against America. The second dynamic is Xi Jinping’s leadership style, which is more assertive and aggressive than any of his post-Mao predecessors, Deng Xiaoping, Jiang Zemin and Hu Jintao. The third factor is Donald Trump, who obsesses about particular parts of the economy, namely trade and to a lesser degree technology.

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