The Future of the Dollar
U.S. Financial Power Depends on Washington, Not Beijing
Since the founding of the People's Republic of China, Sino-U.S. relations have developed by twists and turns. Tying up with the changing postwar international situation, the development passed through different stages each covering roughly a decade.
From the late 1940s to the late 1950s was a period of confrontation between the "two world camps." Throughout this period, China was blockaded, besieged and looked upon with enmity. For well-known reasons, China and the United States met on the battlefield in Korea.
The next decade saw important changes in the "two world camps." It was a period in which the Soviets built up their strength while the United States was bogged down in the Vietnam War. Soviet expansionism showed itself with increasing clarity. During this decade, a number of factors making for better U.S.-China relations were already emerging. But there was not yet a fundamental change in their confrontation.