The World's Financial Crisis And Its Impact On Sino-US Relation

With the rapid development of economical globalization since late 1970s of 20th century, the status and role of economic factors international politics in have risen increasingly and international relations have shown trends of economy. Since 21st century, globalization has been further developed. As the largest developed and developing countries, PRC and United States, both of them have huge economical complements. Therefore, the interdependences and economical factors between two powers are increasing.In this paper, the concept of financial hegemony and essence has been analyzed by using relevant theories of international relations from the study of international political economy. Financial hegemony is the extension of military hegemony and political hegemony in the economical field. On the other hand, military hegemony and political hegemony are the base of financial hegemony. Moreover, a conclusion has been come: the deep reason for present economic crisis are Neo-liberalism promoted by the United States all over the world.In the first section, the background of current economic crisis is introduced mainly. Theoretical foundation established by international economical order, which is dominated by the United States, and its operation rules are included in this section. This section discussed the global effect of this economic crisis and analyzed the reason for this economic crisis. The depth of the crisis and effect suffered from it worldwide are also explained in the first section. In section 2, the main points are the cooperation and conflicts between two powers, China and the United States, in the economical field under the background of economic crisis. In this paper, Susan Casino's financial hegemony and Krugman Trilemma are utilized as analyzing tools. This section demonstrates the unbalance of interdependences between two powers by their related financial data. This section is trying to discover and understand the interaction of politics and economy between two countries. Specifically, the United States supplies public products of economic field by maintaining the international trading currency status of US dollars. Although our country benefits from this, China will be a developing country through a rather long period which will not be changed totally for the expansion of the size of our economy. In other word, labor-intensive is a character of our industrial development over a rather long period. And the demand of currency and credit, which are so-called hot-money coming from some international organizations and developed countries such as the United States, are necessary in the industrial development. This phenomenon is the root causes of unbalanced interdependences between China and the United States.As Keohane Robert 0. and Nye, Joseph S.had pointed out in the work Power and Interdependence: World Politics in Transition., unbalanced interdependence is the source of power. Thus, it is easily to understand why the United States takes the initiative in the changes of Sino-US relations. The impact of the financial crisis broke out the old world political and economic order and exerted a profound influence on Sino-US relations with no doubt.In section 3, demands of national interests between China and the United States have been analyzed by taking those existing hot political and economic issues between two powers into account. This section pointed out the common interests of two countries such as maintaining the stability of world economic order together and resisting the impacts of world economy suffered from economic crisis. Certainly, the cooperation of two powers should not be confined with financial issues. Environmental issues, anti-terrorism issues, combats with transnational crimes are also hot topics concerned by two countries. By tracking the latest changes of Sino-US relations, the author has found there are some changes of unbalanced interdependences between China and the United States due to the outbreak of economic crisis. This led to the adjustment of Sino-US relations.Although economic crisis has exerted serious negative impacts on countries in the world, including China and the United States, the whole world began to reflect the current US-led world political economic structure, to establish a more reasonable new order. Meanwhile, crisis itself shock "soft power" of the United States seriously. However, our sound economic policies and reasonable macro-control adopted by Chinese government, which made relatively small losses in this crisis, has played an important role for US economy and the revival of world economies. Sino-US relations have begun a new era when makes solid foundations of long-term stability of Sino-US and earns a win-win situation.