THe importance and influence of Asia Pacific Business and their Essay

THe importance and influence of Asia Pacific Business and their implications for Australia - Essay Example Today, they are a force to be reckoned with: whether for their economical labor force or for the nuclear tests they are carrying out or the technological developments taking place in these countries. The western superpowers cannot afford to ignore these countries at any cost! A major factor that has influenced half the world's thinking, policies and decisions is the Sino-US bilateral relations. This area has been going through volatile changes as and when the political leaderships changed in both the countries. When George Bush came to power in 2001, there were rumors of a Cold War between the US and China. Serious tensions were sparked between the US and China on various issues. First, there was the issue of a collision of a Chinese fighter with an American spy plane and then it was the designation of Taiwan by the US and Japan as a "common strategic objective." China was certainly not happy with America's open opposition to lifting the EU's arms embargo on China. China was increasingly being viewed by the US as "a military competitor with a formidable resource base." The People's Republic of China (PRC) was perceived as "a military competitor with formidable resource base"5 by the US. Post the 9/11 attacks, however, there has been a subtle shift in the way the two countries view each other. China condemned the bombings in a mild tone but pledged its whole-hearted support to the US in fighting terrorism. China seemed to have taken a softer stand towards American policies and supported its war against terrorism. Beijing has supported counter- terrorism resolutions passed by the UN Security Council and the UN General Assembly. China has been cooperating in the US's efforts in combating the evil of terrorism, both in its own country and at a global level. The past four years have seen sweeping changes in the bilateral relations between the US and China. By providing useful 'information' on radical Islamic groups, it has resumed intelligence- sharing activities that had remained dormant since the end of the Cold War6. While China had not been actively involved in any military action against Afghanistan, it endorsed American intervention there, thus, reflecting a softening of its attitude towards the US. China has pledged to contribute US$150 million towards the reconstruction of Afghanistan. It is also supposed to have played an important role in encouraging close ally Pakistan to support American efforts in Afghanistan. Just as significant is China's lack of resistance to Washington's forcible invasion of Iraq and removal of Saddam Hussein. The present period of improved relations between the two countries is being referred to as the 'honeymoon' period. Political analysts feel that the honeymoon period in the US-Sino relations is expected to last longer as there is a deeper combination of economic, political and strategic considerations underlying it. perceptions and motivations. With the hosting of the Olympics in 2008, it is assumed that Beijing will assume its rightful place in the world's powers. Thus, it would be eager to avoid any confrontation with America that could jeopardize its preparations for the event. China's refusal to adjust its undervalued currency, which has been pegged to the US$ since 1994 and America's ballooning trade deficit with China which