chapter  9
The Political Economy of the Sino-American Relationship: Impacts of the Global Financial Crisis
ByHAO Yufan and BI Jianhai
Pages 12

The economic aspects of Sino-American relations have transformed remarkably since 1978. Thirty years ago China was a poor country trying to reform its rigid planned economy, and looked to the United States for assistance in developing its economy. Today, with a GDP annual growth rate of 9 percent over the last three decades, China has been remarkably successful in becoming an economic power on a global scale, and has become almost an equal partner with the United States. The current global financial crisis has significant implications for Sino-American relations. On one hand, it appears that the economic interdependence between Beijing and Washington has been intensified, as bilateral cooperation was needed to cope with the recent global financial crisis that started in the United States. During the Fifth Strategic Economic Dialogue between China and the United States in Beijing in early December 2008, the two countries agreed to inject US$20 billion for trade finance to buoy global commerce.1