to become more dependent is very troubling because the motive behind such a move from both sides are not in sync.
US wants China to continue to support the US$ and its stock & asset bubble market. The US upper elites are benefiting a great deal thanks to the booming M&A actions and asset bubble. If China invests in US PE firms or stock markets, US hope China follows Japan's footsteps. It is a hugh trap.
China knows it is trapped due to its dependency on the US market for export and job creation. If US bans or levy high duty on China's export, China's mirage economy will collapse. China's strategy is to delay the US action by giving enough goody to US side for the time being. China will not stay in this trap forever...when China is ready, it will break out by catching TW. Doing so will trap JP and destroy US's sphere of influence in Asia.
The current game will play on from now on to 2010 at the most. US and China will have a showdown one way or another. It is not clear who will make the 1st move.
The recent development in China stock market is just a side show of this giant game. The major game play between US and China will come after 2008 Olympics games.
BTW...the movement to boycott BJ 08 game is gaining steam. US is doing eveything to distract and delay China's game play. China is doing the same to the US side (Watch why China is wooing JP recently, a big turn around from its policy in 10 years).
