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International relations – USA and China

  • Writer: Irrational Economists
    Irrational Economists
  • Feb 18, 2022
  • 3 min read

Updated: Feb 27, 2022


The United States of America (USA) and People’s Republic of China have had a complex relationship since 1949. The relationship is generally described as one of close economic ties, and hegemonic rivalry in the Asia Pacific. As the USA and China have the first and second largest economies respectively in the world, this bilateral relation is viewed as the most significant of the 21st century.


Currently, the USA and China have mutual economic, political and security interests. They share similar views such as the non-proliferation of nuclear weapons. Their harmonious relation is shown by the fact that China is the second largest foreign creditor of the US, after Japan. Additionally, since US president Richard Nixon’s 1972 visit to China, every preceding US president, with the exception of Jimmy Carter, has toured China. Though relations have generally improved since the Korean War, it has strained under Obama and Trump administrations, especially in the latter’s clashes with CCP General Secretary Xi Jinping.

Though they are not direct enemies, they are rivals, due to economic competition and differing worldviews. The Trump administration labelled China as a “strategic competitor” in the 2017 National Security Strategy. The US subsequently launched a trade war against China, banned local based firms from selling equipment to Huawei, and other companies linked to human rights abuses in Xinjiang. They also increased visa restrictions on Chinese nationality students and scholars, while designating China as a currency manipulator. These problems arose as a result of the differing opinions of the respective governments. There are unresolved concerns over the role of democracy in government and human rights in China.


Due to the South China Sea being one of the most crucial waterways in the world, it is an important strategic location for both nations. Unsurprisingly, the two countries remain in dispute over territorial issues in the South China Sea. China has adopted “wolf warrior diplomacy” and claims sovereignty over virtually the entire South China Sea, while the United States sees it as international waters and conducts frequent freedom of navigation operations in the area. Another unresolved concern is Chinese espionage in the US. The USA often accused China’s government of attempting to unlawfully acquire US military technology and sensitive information, as well as trade secrets of US-based MNCs. The US believes China utilises a variety of methods, such as espionage, exploitation of commercial entities, and a network of scientific, academic and business contacts, to gather such intelligence from them.


Recently, during the Trump administration, this bilateral relationship has worsened following the US-China trade wars. By May 2020, it became so bad that both sides were encouraging their allies to blame the COVID-19 pandemic on the other.

As of now, under the Biden administration, this tension continues as China is one of the focal points in US implementation of foreign policy. The Biden administration has focused on China’s treatment of Hong Kong, its threats against Taiwan, the Uighur genocide and Chinese cyberwarfare, as potential problems. However, they have yet to settle this dispute as China has been adamant in continuing down the path of antagonistic behaviour.


To summarise, the Sino-American relationship is one worth studying as they are two of the largest economies in the world. Though the relationship has improved since the Cold War days, they do not have harmonious relations with each other, mainly due to their competitive nature and differing political viewpoints. This has only worsened in recent years under the Trump and Biden administrations, with politicians warning of a potential cold war if such tensions persist.


Zwe Paing Htet


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