The temptations of extrapolation are hard to resist. The trend exerts a powerful influence on markets, policymakers, households, and businesses. But discerning observers understand the limits of linear thinking, because they know that lines bend, or sometimes even break. That is the case today in assessing two key factors shaping the global economy: the risks associated with America’s policy gambit and the state of the Chinese economy.

China needs to review its liberalization financial policies, especially the pace of the liberalization of capital accounts, writes Zhang Monan. 2014’s changing global currency financial environment may bring huge risk premiums to China.

Commenting on Chinese President Xi Jinping’s speech at the G-20 Summit in St. Petersburg, Chen Xiangyang explains the significance of Xi’s remarks highlighting the need for cooperation to ensure stable economic growth across the globe, rather than focusing on the economic crises facing rising and falling powers.

With the Fed publicly considering an end to its massive, open-ended purchases of long-term securities and foreign capital fleeing home from emerging markets, many fear that Asia’s economies could come crashing down, as they did in the late 1990’s, writes Liu Mingkang.

Both the US and China, as the world two largest economies and members of G20, share a strong responsibility in supporting the common goal of establishing a job-rich, strong, sustainable and balanced growth path, writes He Weiwen.

The global economy could be in the early stages of another crisis – and, once again, the Federal Reserve is in the eye of the storm. As the Fed attempts to exit from its unprecedented policy of massive purchases of long-term assets, many high-flying emerging economies suddenly find themselves in a vise.

Chen Xiangyang analyzes the growing pains of emerging nations, and suggests that China must learn from other countries' "mistakes" and make sure not to repeat them by doing everything necessary to ensure its own lasting political stability and social harmony.

As financial markets adjust to the end of quantitative easing and the “Bernanke shock,” He Weiwen explains that China must also reform and end its dependence on liquidity supplies. As major economies make revisions, economic adjustments must be made with global markets in mind.

In his blog on global politics, economics, and pop culture at Foreign Policy, Daniel W. Drezner dispels another myth stymieing the building of US-China relations.