Against the backdrop of the financial crisis experienced by the Western version of capitalism, its Asian version is attracting increasing attention. While Europe and the USA are choking in the crisis, China, India and other Asian countries are demonstrating impressive economic gains. In the context of globalization, these progressive Asian economies cannot stay completely away from the problems of the West, which is proven by an example of the stagnant Japanese economy and slower growth in other East Asian countries.

Nevertheless, it is obvious that the success of the Yuan is largely due to a fundamentally different approach to the development of the economic system. China has successfully developed its economy in the absence of political competition, in the situation of the total control of the Communist Party, which, in principle, is contrary to the theory of classical Western liberalism. Yes, there can be a long debate about the two schools of thought and which one is better in the long run. For now, we have to admit that the Chinese way seems ahead in terms of economic growth.

The visit of the Vice President of China to the USA has only confirmed the strengthening of the China’s economic policy. Barack Obama was clearly counting on the greater openness of the young leader to the American wishes, including a very painful American issue of undervalued Chinese currency.

For many years, Washington has been seeking revaluation of the Yuan, which would help reduce some of the monstrous trade deficits with China. Last year it was increased by another 8%, reaching a mammoth $295 billion dollars-nearly half of the total US trade deficit that amounted to $558 billion.

The Americans are hoping that the strengthening of the Yuan would make Chinese goods less competitive in the domestic and will replace at least part of the goods of own production. This not only would give impetus to the stagnating US economy, but would provide much-needed better job outlook to the US President on the eve election.

The constant political pressure from Washington causes even more confusion in Beijing because Chinese authorities are gradually enhancing the value of their currency. Over the past five years, the Yuan has appreciated to the US Dollar by a quarter. The Chinese have taken into consideration the wishes of their American partners. But, according to Washington, the increase in the value of the Yuan could be faster. However, Washington is not in a position to impose its views on the main holder of its own debt.