SDR inclusion will mean an endorsement of the renminbi as an international reserve currency, and at the same time, the Chinese government will have the power and capacity to steer and manage the renminbi exchange rate.

Not so long ago, China’s A-share index lingered around 2,000. Before last week’s plunge, it closed at 5,200. In the short-term, the market will remain volatile, but just as China’s economy hasn’t emulated typical market fluctuations, its potential should prevail in the long term.

Talks on the bilateral investment, the South China Sea and military-to-military relations should help leaders and people in both countries confidence in each other and make China-US relations stand the test of challenging times.

China’s challenges – pollution, corruption, and the economy – have imbued the reform efforts necessary to lead to unpredicted innovation, both by Internet companies and a vast provision of international infrastructure projects.

A major piece in the most recent weekend edition of the Wall Street Journal points out that it’s time to rethink about the U.S. relations with China. This thought provoking article is extremely timely and the issues raised are critical to the future of both countries.

Historic gains in the Shanghai and Shenzhen A-share stock markets are causing some Western analysts to speculate that the growth is being driven by irrational behavior. There are both institutional and individual explanations for this over-confidence, which will need to monitored if the market contracts.

The recent initiative provides the possibility for RMB internationalization to grow deep roots, but that global outreach could be a “double-edged sword.” Exchange-rate fluctuations will mean greater exchange risks for enterprises, but the RMB cross-border settlements could also help enterprises to hedge exchange-rate risks.

Despite obstacles, the White House continues to push preferential trade deals in Asia and Europe. But neither can reverse the erosion of U.S. innovation and in Asia Pacific the proposed pact is more likely to divide than unify the region.

With trade deals on the horizon, President Obama has asked Congress to grant him trade promotional authority, also called fast track, to ‘‘write the rules for the world’s economy.’’ This measure would allow the President to pass sweeping trade partnerships without the input of the American people through their elected representatives in the normal process.

Protectionist U.S. Congressmen are proposing a series of amendments that would enforce currency disciplines for China-U.S. cross-border trading. Rather than protecting import-sensitive sectors with that would penalize developing country producers, Congress and global policymakers would be better off updating the fraying architecture of the international monetary system.