It will come as no great surprise that I am a big Paul Krugman fan. The econ professor and NY Times columnist is certainly a Lefty, but when discussing econ, trade and foreign policy, Krugman is usually grounded in reality. This is a far cry from a lot of Democrats and Progressives when it comes to trade issues, U.S. policy towards China, and multilateralism generally. Krugman actually takes a look at numbers before judging – this is not very common these days.

[I]t’s a very good bet that the biggest foreign policy issues for the next president will involve the Far East rather than the Middle East. In particular, the crucial questions are likely to involve the consequences of China’s economic growth.

[T]he reason oil supply hasn’t been able to keep up with demand is surging oil consumption in newly industrializing economies — above all, in China.

There’s growing concern in [the U.S.] about the effects of globalization on wages, largely because imports of manufactured goods from low-wage countries have surged, doubling as a share of G.D.P. since 1993. And more than half of that rise reflects the explosive growth of U.S. industrial imports from China, which went from less than 0.5 percent of G.D.P. in 1993 to more than 2 percent in 2006.

[B]ack in 2001, when he reneged on his campaign promise to limit greenhouse gas emissions, President Bush cited the fact that the Kyoto treaty didn’t include China and India as an excuse for doing nothing. But the real problem is how to make China part of the solution.

The truth is that China is too big to be bullied, and the Chinese are too cynical to be charmed. But while they are our competitors in important respects, they’re not our enemies, and they can be dealt with.