Interdependence Liberalism on Sino- U.S. Relationship

1935 WordsJul 8, 20188 Pages
Introduction Sino-U.S trade relationship becomes a main concern as it shows economic interaction between the world largest economy and the second largest economy. After China joined World Trade Organization (WTO) in 2001, there is a sharp increase in economic performance. Therefore, the Sino-US trade relation from 2001 to 2011 will be explored in the following sections. Generally, Sino-U.S relationship is peaceful in terms of interdependence liberalism. In terms of Marxism, it is an asymmetrical relationship. Application of Interdependence Liberalism in Sino- U.S. trade relation Interdependence Liberalism Karrbo and Ray (2010) define Liberalism as “a theoretical perspective emphasizing interdependence between states and sub-state actors…show more content…
By the end of 2010 U.S. businesses had invested a cumulative $60.5 billion in China, an increase of 21.4% from 2009 (Lawrence, 2013). Those economic activities such as trading, investment, production and consumption toward the other side deepen their economic relationship and also increase interdependence of them. Attitude of Chinese and U.S government China and U.S. relation on trade is dependency and complementary. Some scholars in U.S. suggested an idea of Chimerica. It means China and U.S. cooperates and takes the leading role of world issues that they are in symbiosis relation (Schmalr, 2012). U.S. is the world's largest consumer while China is the world's biggest savers. They are responsible for consumption and production respectively. The consumption of U.S. helps development of China economy while China industry provide lower price product for U.S market which solving the problem of over-consumption patterns and deficit financing in U.S. (Zhao, 2013). China creates a huge trade surplus, and then loaned to the U.S Transferring those surpluses into bonds reduce the interest rates of U.S. which help the development of financial and real estate in U.S. (Zhao, 2013). The United States needs China's help to maintain the U.S. monetary policy and fiscal stimulus policies, and China also has to rely on the United States to maintain a kind of policy (Zhao, 2013). It shows that they are economic interdependence. In 2009, Steinverg suggested strategic reassurance
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