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.

South China Sea territorial claims — at least in Reed Bank — is really about energy. If all sides recast dangerous nationalistic posturing to more hard-headed economic calculation, it opens the way for more rational, mutual gain negotiations. These could center upon joint development of South China Sea resources. This, as an alternative to war.

China’s main goals are to give consideration to market supply and the exchange rates of basket currencies, to guide market expectations and to maintain a stable RMB exchange rate -- not to jump on the bandwagon of the “global currency war”. That bodes well for the inclusion of the RMB into the Special Drawing Rights currency basket of the IMF before the end of 2015.

Chinese Premier Li Keqiang promised $50 billion in funding for a trans-oceanic railroad from Peru to Brazil, which politicians in Latin America have been dreaming to build for decades. However, an unforgiving geography and political disputes could prove challenging.

The Trans-Pacific Partnership (TPP), with congressional approval, is primed to have “fast track” status to avoid public debate. The TPP would provide new incentives to send jobs abroad, increase corporate earnings, remove protections from both overseas and U.S. environments and workers; supporters argue that it is necessary to “outflank” China.