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China to Obama: Don't mess with us, remember how many bonds we own!


From Yahoo News…

Feb. 2 (Bloomberg) — China said a meeting between the Dalai Lama and President Barack Obama would set back ties with the U.S. that have soured in recent weeks over censorship of Google Inc., climate change and arms sales to Taiwan.

Such a step would “seriously undermine the political foundation of Sino-U.S. relations” and “threaten trust and cooperation,” Zhu Weiqun, a Communist Party official who manages Tibet affairs, told reporters in Beijing today

While Zhu’s comments mirror oft-repeated warnings, tension between the world’s No. 1 and No. 3 economies is on the rise. Any further provocation from either side might hamper global efforts to contain the Iranian and North Korean nuclear programs and make China less willing to cooperate on financial matters, such as mitigating the effects of the global credit crisis.

“The Chinese will take a shortsighted stance toward the United States and the U.S. may take protectionist trade measures against China,” said Huang Jing, a visiting professor at the National University of Singapore’s Lee Kuan Yew School of Public Policy. That would do “irreparable damage to the mindset of the Chinese and American people. Americans may say China’s peaceful rise is a fake and view China like they did the Soviet Union.”

Political considerations in both nations make it hard for either to back down. China’s Communist elite is jostling for influence as it grooms new leaders to take over in 2012 while Obama faces mid-term congressional elections in November and pressure from lawmakers to make China strengthen the yuan to stem a trade imbalance.

This skit from Saturday Night Live explains the situation perfectly.