The credit crunch affecting global financial markets is accelerating the integration of the world's fastest-growing economy China and the world's biggest economic power the US, according to Bermuda's John Milligan-Whyte.

He has been at the forefront of recent efforts to pioneer workable relationships between American and Chinese businesses — with possible significant spin-off benefits for Bermuda — and will next week by meeting officials of the People's Bank of China in New York.

Mr. Milligan-Whyte is the co-author of two new economic books designed to foster better understanding and business links between the US and China. The books, "China and America's Emerging Partnership: A Realistic New Perspective" and "New China Business Strategies: Chinese and American Companies as Global Partners" have caused a stir in both China and the US and debuted at 20 and 21 respectively in online bookstore Amazon's new releases bestseller list for business and investing titles.

As previously reported in The Royal Gazette, Mr. Milligan-Whyte has predicted the way ahead for the global economy is through a true partnership approach between China and the US. He now believes that process is accelerating due to the sub-prime crisis that had placed massive pressure on many of the US's biggest financial institutions and brought major cash injections from Chinese entities.

"Since April 2007, American major financial service firms are in a widespread financial crisis simultaneously affecting confidence in them and the American capital markets," he said.

"Chinese entities are now providing new capital to bolster the capitalisation of selected financial service firms, which may also involve Bermuda companies struggling with their sub-prime crisis exposures."

As an example he cites Central SAFE Investments, which was set up by the People's Bank of China and now has a 10 percent stake in financial giant Blackstone.

The increasing integration between the US and Chinese economies augurs well for Mr. Milligan-Whyte and the Milligan-Whyte Foundation, which has just changed its name to the American & China Partnership Foundation. The Foundation is an invitation forum and think tank for American and Chinese political, business and academic leaders to talk privately on implementing the foreign policy and recommendations in the two books that Mr. Milligan-Whyte co-authored with Foundation president Dai Min.

The two books have drawn positive comment from leading Chinese economic figures, including Wang Maolin, president of China's International Institute of National Multinational Corporations. He said: "The books are talking about a new type of China-US relationship, a partnership. This is very beneficial to both countries.

"From an ideology point of view, these two books raise many important issues for discussion. They are different than other American opinions and theorists. I agree and support the overall opinions and thesis of these books."

Mr. Wang urged attendees at last November's First International CEO Roundtable of Chinese and Foreign Multinational Corporations, held in Beijing, to read the two books.

The conference was attended by a Chinese government state leader, nine government ministers, chairmen of China's banks and stock exchange and hundreds of CEOs from Chinese Fortune 500 companies. Other endorsements of the books have come from Professor Xiao Lian of the Chinese Academy of Social Sciences, Seymour Topping of the US-based Council on Foreign Relations and Maurice Strong, former under-secretary general of the United Nations.

Mr. Milligan-Whyte is a partner of Bermuda law firm Milligan-Whyte & Smith and chairman of Bermuda's CORE Capital Limited. CEO of CORE is Orlando Smith, who is managing partner of Milligan-Whyte & Smith.