China-U.S. Relations: Current Issues and Implications for U.S. Policy
Abstract
U.S.-China relations were remarkably smooth for much of the George W. Bush Administration, raising speculation about how relations will fare after the transition to the Obama Administration. The State Department in 2005 unveiled what it said was a new framework for the relationship -- with the United States willing to work cooperatively with China while encouraging Beijing to become a "responsible stakeholder" in the global system. U.S. Treasury Secretary Henry Paulson in December 2006 established a U.S.-China Strategic Economic Dialogue. With total U.S.-China trade in 2007 at $387 billion, China is now the second-largest U.S. trading partner. China also plays an important potential role in efforts to resolve the current global financial crisis, with China's central bank a major purchaser of U.S. Treasuries and other U.S. debt. China is the second largest holder of U.S. securities and the largest holder of U.S. Treasuries used to finance the federal budget deficit. Other U.S. policy makers have advocated tougher stances on issues involving China. They are concerned about the impact of the PRC's strong economic growth and a more assertive PRC diplomacy in the international arena; procedures to assure the quality of Chinese pharmaceuticals, food, and other imports into the United States; repeated PRC inabilities to protect U.S. intellectual property rights, and trade practices and policies in China that contribute to a strong U.S. trade deficit with China ($256 billion in 2007). Democratic Taiwan, over which China claims sovereignty, remains the most sensitive bilateral issue and the one many observers fear could lead to Sino-U.S. conflict. The political status of Tibet re-emerged as an issue on March 11, 2008, when monks in Lhasa launched a protest against PRC rule. Other concerns about China appear driven by security calculations, such as U.S. officials questioning the motivations behind China's expanding military budget.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 09, 2008
- Accession Number
- ADA493191
Entities
People
- Kerry Dumbaugh
Organizations
- Library of Congress