China's Rise: Challenges and Opportunities (review)

[ 165 ] policymaker’s library • select books published in 2008 China’s Rise: Challenges and Opportunities C. Fred Bergsten, Charles Freeman, Nicholas R. Lardy, and Derek J. Mitchell Washington, D.C.: Peterson Institute for International Economics, 2008 • 256 pp. This book examines the dynamics underpinning China’s rise and suggests U.S. policy responses to further encourage China’s constructive integration into the international community. main argument China poses enormous challenges and opportunities to the U.S. and the world. As China continues to evolve and debate its future course, U.S. interests can be best protected by engaging China actively during this formative period, and by helping the country develop the tools, infrastructure, and policies that will enable Beijing to become a cooperative counterpart to Washington in global affairs. The U.S. should support reconfiguration of the global architecture to incorporateChinaintothediscussionbothofthedevelopmentofinternational rules and of what it means to be a “responsible stakeholder.” policy implications • Given that China faces significant domestic challenges—which include developing democracy with Chinese characteristics and handling relations between the central and local governments—U.S. policy goals would benefit by enhancing exchanges among officials, politicians, academics, and business groups that help China manage these challenges. • China’sunbalancedeconomicdevelopment,especiallyitsenergy‑intensive heavy industry and investment-led growth, has aggravated income inequality, heightened trade tensions, and contributed to serious environmental problems. More vigorous Chinese government policy action is needed in the fiscal, financial, exchange rate, and pricing domains. The U.S. can work with China on climate change through a multilateral climate framework. • The U.S. must ensure that China enhances PLA transparency and understands continued U.S. regional commitments and capabilities, all the while seeking to work with China where there are mutual interests. • As China has the potential to contribute to the resolution of a broad range of global issues, its expanding engagement with the world, channeled constructively, should be welcomed. ...