The Future of the Dollar
U.S. Financial Power Depends on Washington, Not Beijing
At their summit in California last June, U.S. President Barack Obama and Chinese President Xi Jinping committed themselves to building trust between their countries. Since then, new official forums for communication have been launched (such as the military-to-military dialogues recently announced by the two countries’ defense ministers), complementing existing forums such as the Strategic and Economic Dialogue (which features the countries’ top diplomats and economic officials). But despite these efforts, trust in both capitals -- and in the countries at large -- remains scarce, and the possibility of an accidental or even intentional conflict between the United States and China seems to be growing. Given the vast potential costs such a conflict would carry for both sides, figuring out how to keep it at bay is among the most important international challenges of the coming years and decades.
The factors undermining trust are easy to state. East Asia’s