BEIJING -- As the Obama administration wrestles with trouble spots around the world, it is likely to see China as an oasis of calm. That could be deceptive.
Although ties with China have arguably never been more stable in the 30 years since the two countries resumed diplomatic ties, a host of economic and political issues are likely to surface in the coming months. In China, a deteriorating economic situation could increase pressure to further widen the record trade surplus with the U.S.; while in Washington, the trade deficit, as well as lingering concerns about food and product safety, could spur calls for action against China.
"The evidence is overwhelming that there will be a problem," says Derek Scissors of the Heritage Foundation, a conservative think tank in Washington. "I would be shocked if Congress didn't take action targeting China by the summer."
More...