It will be of mutual benefit if China and the US can cooperate on a number of issues, especially when those issues revolve around the security of the relationship. Therefore the three greatest security issues are the lack of mutual trust, Taiwan, and US domestic laws that hinder military-to-military cooperation.
Increasingly harsh rhetoric and combative trade actions between China and the US have given rise to the belief both countries are inevitably headed toward a new Cold-War style confrontation. However this outdated Cold-War framework does not take into account the full extent of China-US ties and the shared incentives both countries have in seeing the other succeed.
Since the outbreak of the financial crisis, many people have hoped emerging economies like the BRICS countries would serve as the engine for continued growth in the world. However, there are reasons to be concerned that the global economic downturn may soon affect even emerging economies like China.
Despite the US’ claims to impartiality in the territorial disputes in the South and East China Seas, it has made its preference very clear – entirely at the expense of China. US involvement in the region stands at the crossroads, with the current US course destined to only bring increased tension.
As the US Presidential election heats up, both candidates are focusing their criticism on job losses to China. Recent accusations by the Obama administration, bringing an auto and auto parts subsidy case before the WTO, will only heighten trade tensions. But are these disputes helping or hurting global markets?
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