2. Threats of us – China bilateral relationship

Because the U.S. does not meet China’s definition of threat, China is not likely to cut economic relations with the U.S. Although, if it did happen that China viewed American actions as threatening, the way that China would react, would be by discontinuing the purchase of the U.S. treasury bonds. By doing so, US’s economy would suffer downturn, as it relies on the sale of treasury bonds as a source of income. If that occurred, the U.S. government would most likely raise interest rates to fight the loss of the debt funding, which, subsequently, would slow down the US economy.

On the contrary, China could easily do without the U.S. treasury bonds on its own. China only has them as the payment for goods they export to the Unites States, which is not enough to put a huge dent in Chinese government should China decide to withdraw their investments.

4. Conclusion

Since 1970s, the world had a chance to observe a period of rapid economic growth. China was one of the biggest nations to engage in this competition. Starting by introducing a policy of reforms, Chinese economy has been growing rapidly since. The growth of China’s market became an important driving force for economic growth of the world as a whole. Overall, the strength of the country expanded noticeably. The standard of living of Chinese people improved gradually, alongside with the significant results that have been achieved in such undertakings as science and technology, culture and education. Retaining rich labor resources, huge market potential, comparative advantage in labor cost and stable government and society, China is believed to become the world’s safest and largest investment economy. “China’s own recent history proves that when it opens itself, there’s nothing its people cannot accomplish. A more open China will lead to a more prosperous and stable China. That’s good for China, the Unites States and, indeed, the whole world”.

End Notes

1. Gary Locke, “China quotes”, http://www.brainyquote.com/quotes/keywords/china_

2. “China imports”, http://www.tradingeconomics.com/china/imports

3. “China exports”, http://www.tradingeconomics.com/china/exports

4. “US-China relationship one of the most important bilateral ties”, The Times of India, http://articles.timesofindia.indiatimes.com/2010-09-21/us/28236254_1_iran-apec-bilateral-meeting

5. Ibid, 1

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