The Interdependence in Sino-US Debt Relations and Its Impact

(By Sun Haiyong)

Abstract: The unprecedented scale of credit-debt relationship between China and the US bases on bilateral economic imbalances and trade-financing circulation, which derived from factors such as the international system dominated by the United States, national economic development and government policy of both countries. China bears more sensitivity and vulnerability than the US in the interdependence of the debt relations for the differences in the degree of mutual trade dependence, gains from bilateral trade, profits from the investment abroad and the room to act. The debt problem has impacted on the bilateral security relations, the issue of RMB exchange rate and international trade strategy of the United States. However, the debt issue also has exerted some political and strategic significance for China.