US & China

Chinese President Hu Jintao & US President Barack Obama

The United States and China probably have the most complex relationship between any two nations in the world today. In the past decade, China has risen significantly and substantially to become one of the world's newest superpowers. This rise is greatly due to the country's economic boom, that began in the late 1970s after economic reforms by the Communist government that gave greater entrepreneurship to business leaders and opened up trade with Western nation, thus brining greater financial investment to the country. Of the nations with the highest GDP, China currently ranks second, just behind the United States.

It can be said there is currently a Cold War between the US & China, not in terms of military might or the strength of each of the countries nuclear arsenals, but rather in economic terms. The greatest source of tension between China and the US has been because of economics. Most recently, in a fight that is sill ongoing, the US has condemned China for it's financial policy of deliberately undervaluing its own currency, the Yuan. The weakness of the Yuan, consequentially, hurts US exports and manufacturers, who find it hard to compete with low Chinese prices. While it may seem unfair to the US, the economic relationship is beneficial for both sides, as China serves as a supplier to the demands for Chinese made products in the US, while the US exports have a good area in business and trade in China.

The relationship between the US and China is difficult one to describe, whether is is harmful, beneficial, or enigmatic. I believe that is a combination of all these factors, with a touch of dependability on both sides. China's rise rest on the strength of the US economy just as much as future US economic progress relies on China's. While it is not exactly amiable and is definitely strained, both countries are enjoying the economic profits that are key to this new special relationship.


Sources:
http://www.economywatch.com/economies-in-top/
http://www.theepochtimes.com/n2/business/chinese-currency-manipulation-us-exports-yuan-dollar-corporate-lawmakers-43353.html
http://www.npr.org/templates/story/story.php?storyId=5353313