China and the Dollar's Global Reserve Currency Status

In 1993, U.S. News & World Report invited politicians, business leaders, academics, and others from around the world to submit questions that they believed would be vital at the end of the next 60 years for inclusion in their 60th anniversary edition.  Presidents of major universities were asked to encourage their faculty to participate and many of them did including the president at the University of Virginia where I taught. As a strategy and leadership professor, I decided to submit a question that I knew would be important, but I really didn't know when it would become important.  It had to do with China.  This was my question: "How can the United States ensure that it is granted most-favored-nation trading status with China which will be the world's lone superpower?" I realized that China was on a trajectory that would enable it to surpass the United States economically and that there is a close connection between economic and military prowess.  It...(Read Full Post)