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If you any economic theory which would make it useful for a country to have huge current account surpluses forever, I could agree, that it is arbitrary to assume, that things change from alone, but I have never heard of that.

Mercantilism.

For that matter, there is no real reason to assume that the Chinese government considers economy to be overridingly more important than other strategic interests. That kind of thinking is a Western(TM) peculiarity. It's entirely possible that the Chinese leadership is perfectly content with having lower than possible economic efficiency if that means that it will have a more solid grasp around the balls of several other major powers.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Thu Feb 21st, 2008 at 10:36:38 PM EST
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I still doubt that it makes sense and I think a creditor is not always in the better situation compared with a debtor.

And if e.g. China would use Mercantilism even after having an overall decent standard of living, we could still start protectionist measures to defend ourselves against them. But up to now this is not the case and western protectionism would really hurt a lot of poor people (and has done it in the last years on agricultural protectionism).

Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers

by Martin (weiser.mensch(at)googlemail.com) on Fri Feb 22nd, 2008 at 09:53:52 AM EST
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