Putting this up a bit late, M Richardson talks on the Chimerica relationship that ASEAN is dependent on by extension. China would have learnt the danger of over reliance on the USA, and while it would take some time to wean away from Chimerica, China would know where to spend its US$2tr of reserves now … domestic demand and reduce reliance on exports.

There are also a few more links to Niall Ferguson’s “End of Chimerica” and other articles. Remember that in Ferguson’s take on Chimerica, it is the USA that is actually remarkably well-positioned to ride out this storm compared to almost every other country; whether developed or emerging, more or less regulated, net importer or exporter. The USA has an unbeatable ability for commercialising technological innovation.

U.S.-China ties: Chimerica – just a chimera?

By Michael Richardson
For The Straits Times, 8 December 2008

…… Chinese officials and analysts suggest that China will retain, and probably increase, its holding of US Treasury securities for the foreseeable future, provided it is confident America will recover from the credit crunch and recession. However, the crisis has prompted Beijing to rethink how best to manage China’s reserves and run the economy in future. Expanding domestic demand and reducing reliance on exports are likely to be hallmarks of any new regime. Shocked by the sudden storm of adversity, China will not want to be so heavily dependent for economic health on any one country again.

The End of ‘Chimerica’

The Break Up of Chimerica