It has been going on for a decade now, the problem with China's undervalued currency. The most dramatic lines in Gideon Rachman's book Zero-Sum World, that came out in November of 2010, are: "It is no longer clear that the most important economic relationship in the world--that between China and the United States--is still mutually beneficial. The Americans worry about their trade deficit with China and argue that an undervalued Chinese currency helped create the credit bubble that blew up in 2008. The Chinese call such charges absurd--and worry about the safety of their dollar assets."
Would a small country with a large export industry be careful to take sides in such a battle? Would they forget what happened when Liu Xiaobo got the Nobel Peace Prize--threats from China to countries participating in the festivities in Oslo? Democracy? Well, the Swedes as a people are still hesitating to join NATO, even if the membership in the EU approximately amounts to the same thing, except a relationship with the US. The Social Democrats and their coalition, prior to the election last September, even suggested that the US should close their bases around the world. That might mean that they think US's supposed empire is in decline. Values or prosperity?
The SOM Institute in Göteborg regularly polls the Swedes to find out what they value the most. It is health, freedom, honesty and a world in peace. Peace runs very strongly among the Swedes. They have a tradition of staying out of the World Wars and concentrate on peace keeping in the UN and Afghanistan. They reacted very strongly against the Vietnam War and has taken in 2% of it's population worth of Iraqis. Faced with this moral dilemma, my guess would be that they retract into a neutrality politics. It is interesting to note that Germany seems to be heading in the same direction?