Neither side can afford to let diplomatic bluster get in the way of a burgeoning economic relationship for long, the Review says. In contrast to the chill which descended on business ties after the U.S. bombing of the Chinese embassy in Belgrade in 1999, executives say it was business as usual this time around. The importance of trade and investment is keeping the relationship on a straight path even as politicians trade insults. The governments on both sides are being very restrained because they don t want this to affect the economic relationship, says Hong Wenda, head of international economics at Shanghai s Fudan University. Disruptions are disruptions, but the trend is unstoppable.
Evidence is compelling.
That is a testament to the rising economic importance of China, Hong Kong and Taiwan in the region. It also matters greatly to the U.S., whose investment banks underwrite the largest issues and whose institutional investors buy them. China has long been the game in town from the Asian perspective. For Beijing, keeping those breathless hopes alive is key to its political stability. While it has had to react with nationalist fervour against the spy plane and Taiwan affairs, businessmen say they have had no inkling that it is being allowed to affect business ties.