China exports a lot, I mean a LOT, of their products to our country. So much so that our nation maintains a trade deficit with China, meaning that we buy more of their products than we sell them of our own.

China’s “concern” for our economy stems from the fact that they need us to keep buying their stuff. Our recession is damaging their economy on a productive level. Meanwhile, the recent isolationist rhetoric gaining ground is frightening them. China is pushing for a new world currency not for their currency reserves’ sake, but to draw attention away from their need.

China needs us to buy their products. Our trade deficit with China has been shrinking of late, just as has our economy. China is scrambling, especially with the value of the dollar diminishing by the second…a billion here, a trillion there…for a solution to its own economic contraction.

We’ve got to understand the flip-side of every scenario. We need China to keep buying our debt. China needs us to keep buying their products. If our currency devalues, so also does China’s. I don’t believe China will use economic warfare against us.

Yet, I also believe that China is one of several nations in this world that would rejoice in our failure. Such an event would mitigate China’s own ascension as the preeminent economic giant in the world.

What do you think China will do? Economic preservation is in China’s best interests. Unless a suitable replacement can be found for the dollar, China will be held captive to the need to export their products.