China's Grand Bargain

China and the United States need each other. China wants the United States to keep its trillions of dollars in Treasury securities safe and valuable. It would like Washington to stop beating the hollow drum of foreign-exchange policy and yuan deflation. China also wants the United States to help reinflate the global economy so that it can grow back from 6 percent per annum GDP to 8 percent or more. Otherwise unrest may escalate.