China Says US Entered New Air Zone Increasing Tension

Tensions are running high in the skies between China and Japan — and the United States is refusing to stay on the sidelines.
After Beijing upset the region by declaring a new air defense zone over a large part of the East China Sea, Washington responded by flying two unarmed B-52 bombers through the area.
The U.S. aircraft ignored China’s new demands that planes that fly through the zone identify themselves and submit flight plans to Chinese authorities.
The delicate situation is a test of how China’s increasingly assertive approach beyond its borders will play out against the U.S. government’s promise to focus more on Asia and uphold commitments to its allies.
“China is busy designing and implementing a bolder foreign policy in light of an anticipated U.S. decline,” Stephanie Kleine-Ahlbrandt, director of Asia-Pacific programs at the U.S. Institute of Peace, writes in a commentary for CNN.com this week.
The air zone declaration is a clear example of the new approach of Chinese President Xi Jinping, who has been in power for about a year, according to Kleine-Ahlbrandt.

via CNN.com

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza