[crdoconnor]

>And that's not even the point: they don't want to go against china directly, there is too much integration.

Yet another reason why China's regional dominance is increasing and the US is shrinking. It's not just their navy. The US is too inextricably tied to the Chinese economy.

In the last 5 years it's been looking like the US would lose out more if China pulled the trading plug (suddenly cut off exports / let the yuan appreciate) than China would.

Cut off Chinese exports now and the US would suffer a wave of cost push inflation like it did in the 70s with the oil shock. It would not be pleasant. US military planner are aware of this and restrict their chest thumping accordingly.

[seanmcdirmid]

Cut off Chinese exports and the Chinese would hurt also. They still have nothing near to a consumer Economy. The inflation would really suck for all the money they have stored in U.S. bonds.

Integration cuts both ways.