China which is an emerging superpower and the fastest growing economy in the world is a trade partner of United States.
The relation shared by these 2 countries is based on mutual benefit. They do not agree with each other on their political views. However, there are a number of common grounds amongst the two nations, such as the fight against terrorism, nuclear war etc which is currently binding them in the US-China foreign relations.
The first signs of the US China relationship date back to as old as 1784 when the first Chinese trader ship called Empress of China used to transport exotic spices, porcelain, cotton, and silks to the United States. Since then there has been considerable trade between the 2 countries. Ever since then, because of many wars such as the Vietnam War, Soviet War, and World War II, the trade relations between the two countries started to deteriorate, the effect of which was felt by both countries. But soon this came to an end with the emergence of the new world and new ideas wherein economy and growth were the main concerns of the two nations.
China and the US are fighting the war against terrorism together especially after the terrorist attacks on US in September 2001. Furthermore, they have also agreed to work in unison to ban the production of fissile materials used in making nuclear weapons and China has signed the Nuclear Non-Proliferation Treaty (NPT) and the Comprehensive Test Ban Treaty in 1996.
Today, US give China preferential nation status in the commercial sector as many multinational companies are investing a lot of money in China. This is because the labor market is very cheap in China and there is no shortage of skilled manpower. This has made China the second largest receiver of foreign direct investment after US.
Did you know that China is world’s 2nd largest economy? It is a growing market for the US products and its service sector. While the global growth is going down, China economy is expanding. The income levels are rising and almost 1.3 billion of its consumers have demand related to the made in USA goods. The US exports to China rose by 76% between 2000-2003. Surprisingly at the same time sales across the globe were declining at the rate of 9%. At present China happens to be the 6th largest market for the US exports and is its 3rd largest trading partner. The spurt of growth in the US sales to China is benefiting the US companies.
In spite of all the differences between US and China one point is certain, that both the countries are working towards maintaining a harmonious relationship with each other which is beneficial to the world economy at large. In order to come to an amicable resolution, a US China Senior Dialogue was carried out so that both the countries could sort out their differences and talk about matters on reciprocal concern which is now being carried by Hilary Clinton.
