Impact Of Economic Interdependence On Sino-U.S. Relationship

The Sino-U.S. economic and trade relations have been long called asthe”stabilizer” and “ballast stone” of Sino-U.S. relations in China.But after thefinancial crisis, the economic interdependence between China and the U.S. becomesdeepening and symmetrical.As a result, more disputes appears in the Sino-U.S.trade,which brings a negative impact on Sino-U.S. relationship.Even someone calls itas "a stumbling block".This paper is trying to analyze the impact of economicinterdependence on the Sino-U.S. relationship.Therefore, this paper firstly analyzethe trade,investment and financial relations of the two countries, and find that there isindeed a mutual dependence in the economic relationship between them.Furthermore,the degrees of dependence in different areas are not the same:China is moredependent on the U.S. of export,and the U.S. Is more dependent of China’s buying ofU.S.’debts.All in all,the interdependence on the whole is moving towards amore symmetrical direction.Through empirical analysis,this paper finds as follows:China’s growing exportsto the U.S. causes a negative impact on the bilateral political relationship,though theimpact is weak; America’s export to China is positive.The bilateral directinvestment’ impact on the political relationship between the two countries is notsignificant.China’s increasing purchase of the U.S.bonds have a positive significantimpact.Anyhow, the economic interdependence between the two countries plays anobvious "ballast" and "stabilizer" role on the political relationship.It is worth notingthat the economic interdependence becomes loosing and competitive with therecovering of American economy and the weakening of the financial crisis.Finally, this paper puts forward some countermeasures: to reform in thedomestic and pay attentions to the speed of economic growth;to reduce the tradeimbalance with America, and actively promote the negotiation of bilateral investment;to maintain a stable amount of American bonds;gradually to reform thecurrent international economic orders with the economic interdependence.