They maintain a regime of controls on capital flows, and have piled up hundreds of billions of dollars of foreign exchange reserves, propping up the US currency in the process. This gives them enormous economic power, which they will not hesitate to use when necessary.
We have to live with China -- and how! -- but during the many diplomatic meals that will be consumed with Chinese politicians, officials and businessmen in the coming years, a long spoon will come in handy.
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