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China's clout growing: Bremmer

Tuesday, June 14, 2011 - 02:19

June 13 - Eurasia Group President Ian Bremmer talks about the shifting balance of power between China and the west. Kyoko Gasha reports.

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U.S. President Barack Obama is urging Chinese leaders to implement policies to help create a more balanced economic relationship between the two countries. But Ian Bremmer, the president of Eurasia Group, says the balance of power has shifted. SOUNDBITE: IAN BREMMER, PRESIDENT, EURASIA GROUP (ENGLISH) SAYING: "The Chinese are looking to the west and saying: 'we want a different deal, you're saying that you are willing to give us a seat at the table at IMF, you are willing to give us voting rights, you know we don't like the IMF, because IMF is created by the west and has western values. We don't want to sit at your table. We want our table.' That's a very different environment." Despite growing dialog between Beijing and Washington - Bremmer thinks structural differences are making conflict harder to resolve. SOUNDBITE: IAN BREMMER, PRESIDENT, EURASIA GROUP (ENGLISH) SAYING: "Geithner saying the Chinese need to move currency, the Chinese saying how about getting your budget in order - we've got an exposure to trillions dollars of Treasuries and US assets and we don't think you are going to be competitive long term. So no matter what you may think about this relationship looking smooth, the reality is that the world's two largest economies, are increasingly in conflict each other, and that reflects a global environment that none of us have ever lived through." The rise of what Bremmer calls "state capitalism" is also making it difficult for the two sides to find common ground. According to Bremmer, state capitalism is an economy where the state is the principal actor versus the free market economy favored by the west. SOUNDBITE: IAN BREMMER, PRESIDENT, EURASIA GROUP (ENGLISH) SAYING: "State capitalism is with us; it is not going away. The reason the world is not still in recession is because a number of emerging market that are state capitalists continue to do well economically despite the financial crisis." And that gives China a stronger voice in discussions with the rest of the world as a new economic and political reality becomes clearer. Kyoko Gasha, Reuters

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China's clout growing: Bremmer

Tuesday, June 14, 2011 - 02:19