No doubt the recent Wikileaks leaks revealed too much. It will remain to be seen whether or how severely Julian Assange will be prosecuted.
However, one of the revelations pivoted around what is most likely the primary—and heretofore publicly unspoken—reason why the U.S. has not been more forceful with China regarding its currency manipulation, intellectual property theft, and tariffs which have weakened the U.S. manufacturing segment's ability to compete against cheapened Chinese imports.
Secretary of State Hillary Clinton, concerned about China's transgressions, was revealed in an exposed cable to have asked, "How do you deal toughly with your banker?"
In September 2008, China surpassed Japan as the largest holder of Treasury Securities. As of October, 2010, China owns $906.8 billion of U.S. Treasury Securities; Japan follows closely behind, with $877.4 billion.
Being the U.S.'s biggest banker has given China a lot of leverage on U.S. trade policy. The U.S. has become too beholden to China to pressure it on unfair trade practices.
So how does the U.S. get its economy back on its feet when it must continue to allow China its trade transgressions? Got thoughts? I'd love to hear from you.