American-Chinese Tensions in the Trump Era: The Pitfalls of Economic Codependency

Abstract

At a time when the possibilities of a new and more contentious U.S.-China relationship is under discussion by the Trump administration, this article cautions that economic codependency should caution against aggressive moves that could jeopardize core American economic and financial interests and increase tensions in the Pacific. In assessing the deep two-way relationship, the article notes that China as well as the United States has powerful resources to bring to bear on their relationship including curbing US exports to China and ceasing to prop up the US deficit economy through the massive purchase of US treasury bonds.