14 April 2015

Wake up, America: China Must Be Contained


The fundamental problem in U.S.-China relations concerns, quite simply, the balance of power in Asia.

The United States needs to fundamentally change its grand strategy toward China.
One need look no further than the recent Asian Infrastructure Investment Bank (AIIB) debacle to understand how China’s ascent is aimed at challenging American global reach. The China-led international financial institution is poised to undermine the influence of the U.S.-led World Bank and International Monetary Fund while institutionalizing China’s geoeconomic coercion in the Asia-Pacific. Italy, France, Britain, Germany, South Korea, Denmark, and Australia have signed on as members of the AIIB, with Thailand and even Taiwan eyeing imminent entry. Meanwhile, the U.S. remains on the outside looking in as its influence is directly challenged by China’s rise.

Along with the AIIB, China is also pursuing a number of additional initiatives to expand its strategic reach in Asia and beyond. China has announced plans to advance a Free Trade Area of the Asia Pacific (FTAAP) and Regional Comprehensive Economic Partnership (RCEP)—trade agreements that link the economies of China, Japan, and India along with Southeast Asian countries.

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