China's bad bet against America

There was ample precedent for both American decisions, but some Chinese leaders expected Obama to be more sensitive to what China sees as its "core interests" in national unity.

Things were not supposed to turn out this way. A year ago, the Obama administration made major efforts to reach out to China. Secretary of State Hillary Clinton referred to "being in the same boat," and that China and the United States would "rise and fall together." Treasury Secretary Timothy Geithner said he spent more time consulting his Chinese counterparts than those in any other country. Some observers even referred to a US-Chinese "G2" that would manage the world economy.