Why The U.S. Needs China

The U.S. and China disagree on a lot of issues, but they remain close allies. So why are China and the U.S. so dependent on each other?

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The United States' relationship to China-like with many countries-is somewhat complex. The U.S. has plenty of grievances and frustrations when it comes to China. Perhaps chief among them is the alleged ways Chinese officials manipulate the country's currency value. American businesses often have trouble establishing themselves in China, a challenge that's compounded by the country's very minimal intellectual rights protections. Tensions between the two countries have also risen lately due to hacking rings that may be tied to the Chinese government as well as the ongoing situation in the South China Sea.

Regardless, the U.S. and China are very reliant on one another. China is the largest purchaser of U.S. Treasury Bonds, owning a tremendous amount of the national U.S. debt. China imports a massive amount of capital from the U.S., especially from California, a state that has seen its export levels rise to $22 billion. The U.S. also leans on China for maintaining strategic diplomatic relations with countries like Iran and North Korea.

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