How Does China’s Economics Influence U.S.

Subject: Economics
Pages: 25
Words: 4747
Reading time:
22 min
Study level: PhD

Introduction

The United States and China are the world’s largest economies and they have had a positive bilateral trade for many years. China is home to about a third of the world’s total population. This is a large market that cannot be ignored by the United States. On the other hand, the United States is the largest economy in the world, with a high purchasing power. China cannot ignore such a lucrative market, especially given the industrial revolution that has been taking place in the past. These two countries are intertwined in an economic environment where one party needs the other in order to support their own economic growth. According to Esfandiar and Wang1, China has been willing to finance the United States’ budget deficit as was witnessed in 2010. The United States is also interested in having country with high purchasing power in China so that their bilateral trade can continue without any hitches. However, it is important to note that, this relationship has come under some form of threat in the near past.

The spirit of nationalism has affected the ability of the two countries to have mutual trade relationship. There is a developing mistrust between the two countries as they feel that the other parties are benefiting unfairly from the other. While China claims that the bilateral trade between the U.S. and her is designed to benefit the United States, the U.S. believes that the ultimate beneficiary of this relationship is China. This war has been going on for some time and is threatening the relationship between the two countries. Both are reviewing the relationship with the aim of coming up with measures that would strengthen their position in the bilateral trade. The findings of this study are counterintuitive because the researcher did not expect that it would be the United States converging instead of China during the last stage of this relationship. It is necessary to analyze this relationship in order to determine the position of our country, and the benefit we get from it. There has been an argument from members of this society that China’s rising overall trade surplus is injurious to our economy. These claims need to be analyzed to determine the truth behind them. In this research, the focus will be to determine how China’s economic influence the U.S.-China relations.

Research Questions

When conducting research, Lin2 says that it is always necessary to have clearly defined research questions that would help guide the process of gathering data. It is common to find a situation where a researcher is swayed from the main focus of the research because other interesting, but irrelevant data that is always available in the field. For example, one would easily be swayed to look at the military strength of the two countries, or the current conflict in Ukraine. In order to avoid such distracters, it is necessary to have research questions that focus on the desired data from the field. When collecting data, the focus would be to find solutions to these questions in order to adequately respond to the issues in the study. The researcher developed theoretical and empirical questions as shown below.

Theoretical question

In this research, it was necessary to analyze the topic from a theoretical perspective. Developing theoretical questions was necessary in order to help in the formulation of theories relevant to the research. The theoretical questions would help in the process of developing hypothesis in this paper. The following was the theoretical question developed that the research seeks to find answers to in order to draw some conclusion about the bilateral relationship between the two countries.

How does the rise in the state’s economic influence affect its foreign relations?

This question is theoretical in nature that focuses on finding the relationship between economic influence and foreign relations that a country may have with other countries. At this stage, the question seeks to capture the general relationship between economic influence and foreign relations. The question will form the basis of our hypothesis in this study. It would help guide the research.

Empirical question

In this study, it was also necessary to develop an empirical question that will be investigated through the case study that will be conducted in this research. According to Kupchan3, “An empirical question is a question that can only be settled by thorough investigation or research.” This question will have to be settled by a detailed case study that will be done in this research in order to determine the changing trend in the relationship between the United States and China, and how the growing economy of China could have played a part in influencing this relationship. It is important to note that at this stage, the focus has been fully placed on China’s economic influence, and not a stated question as the previous one.

How does China’s economic influence impact U.S.-China relations?

This question will be responded to through the case study that will be conducted in this research.

Research Hypothesis

A research hypothesis helps in defining a possible outcome of the research based on the preliminary information gathered or the general knowledge of the researcher. In this study, the researcher developed a proposition and argument on the topic based on the preliminary knowledge gathered on this topic. The proposition below was made by the researcher in light of the preliminary information.

There has been a convergence in the U.S.-China business interaction interactions.

The argument is that the United States and China have realized that they need each other for bilateral trade. The two countries are the leading economies in the world, and the only way through which they can maintain this is by having a healthy relation with each other. There have been three stages of the bilateral relationship between the United States and China. In the first stage, China was converging because it needed to expand its market by joining World Trade Organization and this relationship was successful. This would help the country expand its economy and develop Chinese corporations. In the second Stage, China stopped converging because it had gained global economic competitiveness. Its economy had grown, and it had reached a level where it no longer saw convergence as the only solution to its economic development. This means that its relationship with the United States never meant much to it. For this reason, the relationship failed. In the current stage, the United States is converging because of the growing relevance of China as an economic power. China has been actively buying U.S. treasury bonds to help finance the United States deficit. This recent relationship has been classified as successful.

The three hypotheses give the path that the relationship between the United States has taken over the years. These hypotheses will be tested and confirmed through a detailed case study that will be conducted in this research.

Literature Review

There has been a divided view about the bilateral trade relations between the United States and China. These views can broadly be analyzed from two different perspectives of liberalism and realism. Liberalism thinks optimistically that the economic relations between U.S.-China could be successful. The liberals strongly believe in and support equity, liberty and free trade. They view the United States and China as two sovereign states which need each other to trade and support their economies. According to Peng,4 China and the United States are sovereign countries with liberty to choose the relations they need to get into. For this reason, the bilateral trade relations should always be based on the principle of mutual agreement and respect for each other. This group believes that there is a possibility success if both parties are willing to get into a mutually respectful trade agreement. Liberalism believes that this is a possibility because the two countries have mutual respect for each other.

On the other hand, Realism thinks pessimistically that the economic relations between U.S.-China could be failed. According to Sutter,5 this group believes that nothing positive can come out of this relationship because of their egoistic nature. China has gained economic power, just like the United States. However, these people believe who believe in international anarchy, egoism, and power politics still do not want to believe that China has achieved a status where it can demand equal treatment in its bilateral trade relations with the United States. They believe in the era that had passed where the United States was the power that set policies guiding the relations between the two countries. This new era where China has the economic power is unique to them. For this reason, they believe that the relationship between the two countries has failed. They cannot believe that relations where the two countries have equal power can succeed.

It is important to note at this stage that the approach that these people have taken in analyzing the relationship between China and the United States has some weaknesses. They only discuss the outcomes, which are success vs. fail, but do not mention the mechanism is quite different. Those who argue that the relationship will fail do not look at the mechanism that would lead to the failure that they are predicting6. They are blind to the forces that are drawing the two countries together. According to the reports by Sutter,7 China is currently the third largest market for U.S. export. On the other hand, the United States still remains a very attractive market for Chinese products. These economic factors should be critically analyzed before making an overall judgment that the relationship is a failure or success. For instance, one question that must be answered before making such a conclusion is whether China can ignore U.S. market and whether U.S. can ignore Chinese market. These are some of the mechanisms that would determine success or failure of the relationship.

The researcher believes that even though the cases are either successful or failed, the mechanism is different. This can be analyzed using the three stages of this bilateral trade relation. According to Hachigian8, when China and the United States entered into a bilateral trade, it was widely viewed that the United States was doing a favor to China that was struggling with its economy. China’s main concern was to get economic empowerment. This was the first stage of the trade relations between the two countries. In this relationship, both parties were in agreement that the United States was the major partner. It had the power to define policies that would regulate the way the two countries related. This worked well for both countries as China was aiming to join World Trade Organization. The country needed to converge in order to address its domestic economic concerns that were affecting its economic growth. To China, the United States offered it the best opportunity to expand its economy and compete favorably against regional powers, especially the Republic of Japan. This relationship worked for both parties. Sutter9 attributes this to the fact that, during this time, there was no conflict of interest between the two countries. Each of them had their own aims, and as it was, all signs indicated that each of them was satisfied. What the United States failed to realize during this period was that China was economically growing at a very fast rate. The country got grants and soft loans from the United States to develop its economy. The United States was also the ultimate market for most of its export. China exploited this window maximally. The United States ignored the fact that an economically empowered China would offer conflict of interest in the bilateral and multilateral trade relationship that the United States had with other countries. China was able to join WTO in 2001 after making reforms that were demanded by the WTO and the United States. This relationship was generally considered successful.10

According to Sutter11, there was a shift in the relationship between the United States and China in the recent times as China gained economic power to become the second largest economy in the world. This is always described as the second stage of the relationship. China had achieved its goals that defined their initial relationships. It had grown to become one of the leading economies in the world. The financial support it had been receiving from the United States and a vast human power propelled its industrial sector to become one of the largest in the world. It was also developing bilateral and multilateral trade relationships with other countries other than the United States. The initial relationship with the United States had been very fruitful, and the country had become as competitive as the United States itself. For this reason, the country did not find it favorable that the United States still viewed it as an underdog in their relationship.12 China wanted a bilateral trade relation where both parties would have policies that are considerate to both countries. This strained the relationship that actually led to the collapse of the bilateral relationship that had existed between the two countries. It demanded an environment where both parties mutually agreed on specific policies without being subjected to issues that it was against. This appeared a little strange to the United States that was used to an environment where it was the superior partner. The bilateral relationship failed.

The third stage is the current bilateral trade relations between the two countries. The United States started giving in and is converging because of the significant growth of China. Currently, it has been observed that the two countries are warming up to each other once again.13 At last, the United States has realized that China has grown to become a major economic power, and should be treated as such. In fact, the United States has realized that China has the potential to help it overcome its economic woes.14 It is now China extending economic help to the United States, something that some members of our society do not want to appreciate. The researcher believes that the saving culture of the Chinese means that the country has a lot in its reserves, making it easy for it to finance the U.S. financial deficit without affecting its own economy. On the other hand, Chinese firms are enjoying the benefits of operating in the U.S. markets. As Hachigian15 observes, China is currently comfortable with trade surplus in its relationship with the United States. With both parties mutually benefiting from this relationship, it is viewed as a success.

Methodology

In every piece of research, it is important to devise the most appropriate research method that would yield the desired results. The methodology chosen should be able to facilitate the collection o the desired data and analyze it is a way that would help in making a sound conclusion about the topic of the research.16 In this study, a qualitative research method in the form of case studies was considered more appropriate. This primarily means that all the data used in this research was gathered from secondary sources. These included books and scholarly journals that focused on this topic. The decision to focus only on the secondary sources of data was made because of the nature and time that was available for the research. The nature of this research makes case studies the most appropriate sources of data. This is so because no single person can claim to have the information regarding this topic other than researchers who have been studying the trend that this relationship has been taking over the years. The findings of these scholars have been factored in at the literature review sections. The financial articles and other relevant books have been very resourceful in this qualitative research. It means that the only other valid source of information would be the case studies. Case studies are some of the best sources of information that can be used in a research process.17 The time available for this intensive research was also limited. The case studies offered the best solution to this problem. For this reason, it was chosen as an appropriate approach of arriving at a conclusion in this study.

Case Studies

Stage 1: Successful Relationship as China Seeks to Join World Trade Organization

In the first stage of the relationship, China realized that it needed to join World Trade Organization because it realized that it was no longer tenable to avoid the world market. It had to converge in order to achieve economic success. In 1986, China began talks on how to join GATT. However, these talks failed in 1989 following the Tiananmen Square Crackdown as there was a suspicion between the United States and China. In 1992, China was forced to go back to the talks in order to find the best approach that would enable it join GATT without jeopardizing its own interest. In 1995, WTO replaced GATT, and this led to China becoming more interested in joining the organization because of the economic benefits that it would get. However, the policies set by the United States were seen to be unfavorable by the Chinese government. However, China had to do something to join this economic block. In April 1999, an offer made by Premier Zhu Rongji was rejected by the then President Bill Clinton.18 On 7th May 1999, it was reported that NATO bombed the Chinese Embassy in Yugoslavia, a fact that further strained the relations between China and the United States. However, China was still determined to join WTO. In November 1999, the United States, World Trade Organization, and China organized a trade liberalization debate in Seattle with the focus of finding the best way of making China become a full member of WTO.19 On November 15th, the United States’ government made an announcement which indicated that the talks between China and World Trade Organization on bilateral trade modalities were successful. China had given in to the demands laid down by the United States. Some of the concessions that China had to make to join WTO included cutting average tariff levels to 17 percent, allowing foreign investors into the telecommunication industry, allowing U.S. internet companies to invest in China, cutting import tariff on autos from 100 percent to 25 percent. Others included allowing foreign banks to operate in China, cutting down tariffs on agricultural products to 14 percent, allowing Hollywood films in China, and eliminating export subsidies. These conditions were considered punitive, but China had to accept them in order to join WTO. After a series of concessions by the Chinese government, the country was finally allowed membership into World Trade Organization on December 11, 2001 at about 0828 hours GMT.20

Stage 2: Unsuccessful Relationship as China Stops Converging

The second stage of the relationship between the United States and China witnessed a strained bilateral trade agreement between the two countries as China stopped converging. In 2010, Chinese economy had surpassed that of Japan to become the second largest economy in the world. It had also penetrated the markets in developing economies in Asia and Africa. An indication that the relationship between the two countries was strained became evident in November 2011when U.S. Secretary of States, Hillary Clinton, proposed a change in foreign policy that would see the United States increase its investment and trade agreements with Asia-Pacific countries. This was seen as a direct move to counter the economic power of China in the region. In the same month, President Barrack Obama announced that the U.S. was entering into a Trans-Pacific Partnership with eight countries that excluded China.21

On February 2012, there was a rising trade tension between the United States and China. The cause of this tension was the massive U.S. trade deficit. The trade deficit was determined to be $ 295.5 billion. The United States attributed this imbalance to unfriendly trade policies set by the Chinese government that promoted exports but restricted imports. The United States claimed that China was going against the agreements made when it was joining the World Trade Organization in 2001. The United States also notes that the quota on rare earth metals was a restriction from exporting the important products needed by other companies around the world for their manufacturing process.22 This move was forcing some firms to move their production plant to China to cut cost of production, giving the Chinese economy a major boost. In response, China responds, stating that the claims were unfounded, and vowed to fight its legitimate rights. At this point, the relationship failed.

Stage 3: Successful Relationship as the United States Seeks Convergence

In the third stage, which is what is currently taking place, there has been deliberate effort to improve the bilateral trade relationship the United States and China. According to Sutter23, there was a sudden shift in the relationship between the United States and China in the late 2012. The heavy criticism that the Chinese government had towards Obama administration slowed as it was seen that a new cordial relationship between the two was developing. This sudden change of events was witnessed in March 2012 when China abruptly stopped purchasing oil from North Korea, Iran, and Syria, countries that the United States had trade sanctions on because of security concerns. In late 2012, the United States President Barrack Obama and his vice president Joe Biden said the two nations were working on plans on how to solve their trade problems with practical and constructive attitude and achieve win-win results.

In February 2012, the then Chinese vice president Xi Jinping made a five-day visit to the United States where he met the United States Joe Bidden, the Pentagon, and other top U.S. officials to discuss trade related issues. He also met the private sector leaders and discussed how American firms could operate in a friendly market in China. He was accompanied by other Chinese government officials and business leaders who also negotiated the business deal with the local business fraternity in the United States. Firms from the two sides also signed trade and investment deals covering the areas of electronics, telecommunications, farm produce, energy, environmental protection, mechanics, chemical industry, pharmacy, among others. On 21st February 2012, it was announced that following the visit, the US films could operate in China without unnecessary restrictions following a successful trade agreement made between the two countries.24 Xi also met congressional leaders to discuss legislative issues that could help speed up bilateral trade agreements. On June 2013, President Xi Jinping and President Barrack Obama’s successful summit reaffirmed the U.S.-China bilateral trade agreements. This relationship has been a success.

Discussion

The United States remains the leading economy in the world. However, this position is not cast in stone, and unless we review some of our bilateral trade relationships with other countries, we may subject our economy to serious negative impact. China’s economy is growing at alarmingly high rate, the fact that has seen it surpass other major economies like Japan. According to Hachigian,25 China has become the main threat to the United States’ exports in various parts of the world. It has surpassed our country as the main exporter to the third world countries, especially in Africa. This is because of its ability to supply cheap products to these emerging markets. It is also offering stiff competition to our country in the developed markets. However, what is even more worrying is the direct bilateral relationship between the United States and China. We were attracted to China because of the belief that its large market would be beneficial to our products. The over 1.3 billion people convinced this country that a bilateral trade would yield positive benefits to the country. With a population of barely over 300 million, we make less than a quarter of China’s total population.

It would be expected that our export to this country will be four times what we import from them. In case this may sound unfair, then our export to China should be slightly higher than what is imported from the country. However, this is not the case. The import we get from China is almost four times what we export to the country.26 A number of economic experts in the country have termed this unrealistic. We viewed China as a country with a large population that would offer a wide market for our locally produced goods. The bilateral trade was expected to increase the market share for our products, but the opposite seem to be true. Our country is turning out to be a lucrative market for Chinese products.

America seems to be losing its grip and control in this relationship. China is slowly taking command, and our country is being forced to tow the line as defined by China. A number of theories have been put forth to explain why China was willing to fund the United States’ budget deficit. However, one fact that comes out clearly is that China was keen on restricting other major economies from its vast market in order to protect the local industry. It knows that a weak economy in the United States may not sustain its bilateral trade benefits. Therefore, this country is lending the United States some money to enable it to continue buying Chinese products. That is a tactic that was used by the United States in the past, and it played a major role in making the country the leading economy in the world. When another country is using it against our country, then this is a clear indication that something is wrong with our economy, and especially the bilateral trade relationship between the United States and China.

It is important to note that this research had some limitations. The main limitation in this research was that the data was gathered from secondary sources. This makes it prone to personal biases that may not be identified by the researcher when collecting data. In order to overcome this limitation, the researcher used a series of sources in order to help single out cases of biases in some of the sources. This way, it was easy to identify and avoid extremism in this report.

Future Implications and Policy Suggestions

This research has been comprehensive in analyzing the nature of the bilateral relationship that has existed between the United States and China. In this paper, the focus has been to identify the history of this relationship, and the current position of the United States. It is expected that this research will have implication in the education sector and among the policy makers in the country. In the education sector, this research offers a rich source of information about the bilateral trade between the United States and China that has been in existence over the years. Scholars who are doing research on this topic may find this paper very resourceful in their review of literatures. To the policy makers, this research is important in defining policies regarding the relationship between this country and China. China’s population is over four times that of the United States. It would be expected that the United States’ exports exceed its imports from China. However, it is worrying that the Import from China is much greater than exports to China. This trade deficit is worrying, and policy markets must find a way of addressing the issue in order to protect our economy.

Conclusion

The discussion above has shown the dynamic bilateral trade relationship that exists between China and the United States. This relationship has been classified into three stages. In the first stage, China was determined to converge in order to get economically empowered. This was achieved in 2001 when China became a member of World Trade Organization. In this first stage, the United States was the superior partner, and it defined policies that had to be followed. In the second stage, the Relationship between the two countries soured as China became economically empowered. By 2010, Chinese economy had massively grown, becoming the second largest in the world after the United States. The relationship between the United States and China got worse as China started coming up with policies that the United States had to observe in their bilateral relationship. Currently, the two countries are warming up to each other, and it is evident that, unlike the past, China is now the partner that is offering economic help. The policy makers in this country need to review this relationship. The trade deficit that we have with China needs to be addressed in order to boost our economic growth. The relationship should be based on mutual economic benefit for both countries for it to be considered fair.

Bibliography

Brandt, Loren and Thomas Rawski. “From Divergence to Convergence: Re-evaluating the History Behind China’s Economic Boom.” Working Papers 158, no. 12 (2012): 1-149.

Esfandiar, Maasoumi, and Le Wang. “Economic Reform, Growth and Convergence in China.” Econometrics Journal 10, no. 2 (2007): 1-25.

Guo, Sujian, and Baogang Guo. Thirty Years of China-U.s. Relations: Analytical Approaches and Contemporary Issues. Lanham: Lexington Books, 2010.

Hachigian, Nina. Debating China: The U.S.-China Relationship in Ten Conversations. London: McMillan, 2014.

Kupchan, Charles. “Soothing China-U.S. Tensions.” New York Times, 2010.

Lin, Christina. “Testimony before the U.S. -China Economic and Security Review Commission Hearing on the China -Europe Relationship and Transatlantic Implications Panel II.” NATO 210, no. 1 (2012): 1-59.

Peng, Fu. “China Voice: China facing long way from world’s No.1 economy.” Xinhua News Agency,2010.

Ran, Wei. “Xi-Obama summit successfully reaffirms U.S.-China ties.” Xinhua, 2013.

Savin, Maggi, and Claire Howell Major. Qualitative Research: The Essential Guide to Theory and Practice. Milton Park, Abingdon, Oxon: Routledge, 2012.

Sharan Merriam. Qualitative Research: A Guide to Design and Implementation. San Francisco: Jossey-Bass, 2009.

Sutter, Robert. U.S.-chinese Relations: Perilous Past, Pragmatic Present. New York: Cengage, 2013.

Zhongzhou, Li. “Seeking a win-win scenario in trade between China, US.” China Daily, 2013.

Annotated Bibliography

Hachigian, Nina. Debating China: The U.s.-China Relationship in Ten Conversations. London: McMillan 2014.

It is a fact that many Americans are yet to believe that the country may be experiencing serious economic crisis that makes it largely depend on countries such as China to finance its budget deficit. It is better to accept the truth early enough, however ugly it may appear to be, and come up with the best approach of correcting some of the issues we do not like about our economy, or the bilateral relationship we have with China. Lehman Brothers was considered too big a firm to fall, and many of the investors ignored early signs that indicated that the firm could be under eminent danger. It was not until very late that they came to terms with the truth, and by this time, this firm had been declared bankrupt. The United States may not be compared with the case of Lehman Brothers because our power goes beyond our economic strength. We have invested in numerous other things, making us occupy a special position in the world. We are still the only remaining superpower in the world. However, it is important to avoid the temptation of dismissing any sign of distress as a mere myth that holds no truth. We have to stay alert in order to protect our economy. For this reason, the following hypothesis gives the view of the researcher about the topic of the research based on what is in public domain, and what other scholars have written about the same topic in the past.

Guo, Sujian, and Baogang Guo. Thirty Years of China-U.s. Relations: Analytical Approaches and Contemporary Issues. Lanham: Lexington Books, 2010.

The United States and China have had bilateral trade relations that have been seen by both countries as being economically viable. While China is attracted to the United States because of its purchasing power, the United States is attracted to China because of its large population. Each country has what the other need, and this makes it possible for them to converge in a bilateral trade relationship. It is necessary to note that this hypothesis forms the basis upon which other hypotheses will be developed. This is so because it validates the need for the relationship. It confirms that the relationship is necessary for both countries, and this is what has made them not to walk away from this tie despite the growing tension between them.

Brandt, Loren and Thomas Rawski. “From Divergence to Convergence: Re-evaluating the History Behind China’s Economic Boom.” Working Papers 158, no. 12 (2012): 1-149.

The relationship between the United States and China can be summarized in three key stages. In the first stage that took place some years back, especially after the Second World War. At this stage, China considered the United States’ as an economic power that is worth being an ally. This relationship was successful because China considered itself the less powerful partner, and this was very helpful in the decision making processes. However, this changed during the second stage when China gained economic power. It no longer needed the United States as it had become as competitive as the United States itself. With the two viewing themselves as economic powers, the relationship between them failed. In the last stage which is taking place currently, it seems the United States has realized that it needs China. China has been one of the leading countries that is financing America’s budget deficit. It means that China is being raised to a status that is higher than that of the United States. It is now the United States that needs China to support its economy, and under this new relationship, there seems to be success.

Lin, Christina. “Testimony before the U.S. -China Economic and Security Review Commission Hearing on the China -Europe Relationship and Transatlantic Implications Panel II.” NATO 210, no. 1 (2012): 1-59.

There has been an argument from a section of the society that the economic empowerment of China could be the reason for the straining relationship between the United States and China. Although it we not give direct focus on China as a country at this stage, there is an attempt to determine if the deteriorating relationship between China and the United States could be as a result of the growing economic influence of China. It would help to determine if this relationship is unique or a normal occurrence when one country gains economic power.

Fu Peng. “China Voice: China facing long way from world’s No.1 economy.” Xinhua News Agency, 2010.

It is a fact that China has been experiencing economic growth over the past years. It has been able to outmuscle the United States out of the markets in the developing economies. It is offering the United States a strong competition in the developed markets. Chinese products are threatening our own products in our own market because of their friendly prices. In this question, we seek to determine how this growing economic influence of China impact on the bilateral relationship between the United States and China.

Esfandiar, Maasoumi, and Le Wang. “Economic Reform, Growth and Convergence in China.” Econometrics Journal 10, no. 2 (2007): 1-25.

The field of research has attracted massive attention from many researchers who are interested in defining the relationship between The United States and China. It is important to finding the causes of this bilateral relationship, its impact, and the true beneficiary out of this outfit. The series of economic reforms that have been conducted by the two countries have reshaped the bilateral trade relationship between them. The growing relevance of China as one of the leading economies in the world has made it necessary for the two countries to make economic reforms. China is currently as competitive as the United States economically, and this has made it demand fair treatment in the nature of relationship that exists between it and the United States.

Sutter, Robert. U.s.-chinese Relations: Perilous Past, Pragmatic Present. New York: Cengage, 2013.

There has been a concern among the Americans that China’s economic boom is having negative impact on the United States economic position in the world. The growing Chinese economy is siphoning away the America’s economic strength. This research has clearly brought out the nature of this bilateral relationship, and how the growing Chinese economy is affecting the manner in which the two countries relate. It has pointed out some issues that make our country a weaker partner in this relationship, and the long term effect this may have on our economy. However, these two countries have realized that despite the straining relations, there is need to review their relations in order to ensure that they retain a mutually beneficial relationship.

Kupchan, Charles. “Soothing China-U.S. Tensions.” New York Times, 2010.

There has been an effort by the United States and China to renew the relationship between the two countries. The leaderships in the two countries have been developing policies that would help address the suspicions that have been existed between them in the recent times. The recent statements made by the president of the United States is a clear indication that the United States is ready to start talks with China that would help mend the broken relationship. China has also responded positively, a fact that has made analyst believe that the two countries will once again enjoy a mutually beneficial relationship.

Footnotes

1 , Maasoumi, Esfandiar and Le Wang, “Economic Reform, Growth and Convergence in China,” Econometrics Journal 10, no. 2 (2007): 17.

2 Christina, Lin, “Testimony before the U.S. -China Economic and Security Review Commission Hearing on the China -Europe Relationship and Transatlantic Implications Panel II,” NATO 210, no. 1 (2012): 18.

3 Charles, Kupchan, “Soothing China-U.S. Tensions,” New York Times, 2010.

4 Fu, Peng, “China Voice: China facing long way from world’s No.1 economy,” Xinhua News Agency, 2010.

5 Robert, Sutter, U.s.-chinese Relations: Perilous Past, Pragmatic Present (New York: Cengage, 2013), 54.

6 Robert, Sutter, U.s.-chinese Relations: Perilous Past, Pragmatic Present (New York: Cengage, 2013), 71.

7 Ibid 57.

8 Nina, Hachigian, Debating China: The U.s.-China Relationship in Ten Conversations (London, McMillan 2014), 45.

9 Robert, Sutter, U.s.-chinese Relations: Perilous Past, Pragmatic Present (New York: Cengage, 2013), 23.

10 Nina, Hachigian, Debating China: The U.s.-China Relationship in Ten Conversations (London, McMillan 2014), 45

11 Ibid 51.

12 Ibid 89

13 Nina, Hachigian, Debating China: The U.s.-China Relationship in Ten Conversations (London, McMillan 2014), 45.

14 Wei, Ran, “Xi-Obama summit successfully reaffirms U.S.-China ties,” Xinhua, 2013, 1.

15 Ibid 90.

16 Sharan Merriam, Qualitative Research: A Guide to Design and Implementation (San Francisco: Jossey-Bass, 2009), 76.

17 Maggi, Savin, and Claire Howell, Qualitative Research: The Essential Guide to Theory and Practice (Abingdon: Routledge, 2012), 73.

18 Sujian, Guo, and Baogang, Guo, Thirty Years of China-U.s. Relations: Analytical Approaches and Contemporary Issues, Lanham: Lexington Books, 2010, 67.

19 Ibid 71

20 Ibid 84

21 Robert, Sutter, U.s.-chinese Relations: Perilous Past, Pragmatic Present (New York: Cengage, 2013), 89

22 Li, Zhongzhou, “Seeking a win-win scenario in trade between China, US,” China Daily, 2013, 1.

23 Robert, Sutter, U.s.-chinese Relations: Perilous Past, Pragmatic Present (New York: Cengage, 2013), 89.

24 Li, Zhongzhou, “Seeking a win-win scenario in trade between China, US,” China Daily, 2013, 1.

25Nina, Hachigian, Debating China: The U.s.-China Relationship in Ten Conversations (London, McMillan 2014), 70.

26 Ibid 69