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The rise of China as a new power is another great challenge for the US. Our failure to properly handle Germany and Japan earlier in the 20th century cost us and the world dearly. We must not make this same mistake with China.

After its defeat in the Second World War, Japan, unlike Germany, failed to show true contrition or give a fulsome apology, though it showered its neighbours, including China, with generous economic assistance. Only in 1995 did it finally offer an apology, but this was of the most limited and formulaic kind.

China will be the answer to Japan's problems.

The U.S. berates China for its exchange rate policy, which Washington doesn't like. But one-sided pressure on China to change its exchange rate is misplaced.

Nevertheless, China was unfortunately unable to understand Japan's real position, and it is greatly to be regretted that the Sino-Japanese War became one of long duration.

Historians are going to look back on rising China and say America, at least under the Bush years, did not get that wrong.

I don't share the view that China and the U.S. need to reach some kind of strategic accommodation to carve up the Asia-Pacific region - that is an arrogant proposition and deeply insulting to other countries in the region, including Japan and potentially also India and Indonesia.

China saves too much, produces too much, sells too much to Americans and consumes too little.

When China fails to live up to its obligations, we push back - sort of. We accept arguments from Chinese leaders that they are a developing country that needs time to reform.

I think it is a mistake to withdraw from Trans-Pacific Partnership because if America abandons the Asia Pacific markets, we'll lose.