By Rachael Cameron
The United States has responded to China’s rapid growth as an economic power by taking a soft-line diplomatic approach. This is to ensure the U.S. access to China’s economic resources. While China holds a significant portion of Americans debt, the U.S. is one of the largest buyers of Chinese exports. Thus, the U.S. hopes to maintain friendly and productive economic relations with China so as to not disturb the symbiosis between them. While urging China to be responsible with its newfound economic power, the Obama administration simultaneously seeks to maintain a peaceful dialogue and build up strong bilateral cooperation. Notably, the Obama administration has enhanced the U.S.-China Strategic and Economic Dialogue forum. However, while the U.S. wants to ensure China continues to by up American debt, it is wary of China’s increasing influence over the both the U.S. and the international community.
The United States’ desire to support its own economy while preserving economic relations with China has driven U.S. encouragement of China to revalue its currency to market exchange rate values. China has kept its currency, the renminbi, below market-determined value to persuade other countries to buy Chinese goods. However, as China maintains a high economic growth rate in the globalized economy where most economies are all interdependent, the undervalued renminbi has thrown off the monetary balance between countries. It also means that investment in the Chinese economy is not worth as much as it should be.



















