1. Population: 1.3 Billion; first in the world, followed by India, and United States
2. The State: People’s Republic of China (PRC), founded in October 1, 1949
3. Government type: Communist authoritarian state; one party rule (Chinese Communist Party).
4. An economy of $4.9 trillion and GDP annual growth: average 10% per year; about 8.7% in 2009
5. Military power: China’s military spending has been growing since the early 1990s, at about 10%
increase per year. For 2009, different estimates about PRC’s military budget, but roughly between $70-
$150 billion, or 1.6% of China’s GDP. The second largest military expenditure after the United States.
The Legitimacy of Chinese Communist Party
1. Economic prosperity and export-led growth
The Rise of China: Strategic Partner or Strategic Competitor
1. China’s growing military and economic power affects East Asian balance of power among Japan, South
Korean, Russia, and US
2. Responsible stakeholder in controlling nuclear proliferations: North Korea, Iran?
3. China’s “charm offensive” in southeast Asian, Latin American, Africa, and Middle East
4. Trade imbalances, currency exchange rates, piracy over intellectual property rights, human rights, global
warming, Taiwan, and Tibet
Facts about US-China Trading Relations
1. China is the second largest trading partner, at $360 billions in 2009
2. Since 2005, the US has had a trade deficit with the PRC at about $226.8 billions in the year of 2009
1. US is the top trading partner, at $298 billions in 2009
2. As a result of its high annual trading surpluses, China has become, since late 2008, the top holder of US
treasury securities, at about $870 billions as of May 2010.
1. Had its origins in 1949, but wasn’t pursued vigorously until after 1979
2. Based on the neoliberal assumptions that with greater trade interdependence, cultural exchanges, China
would become more liberalized, democratized, and cooperative with the US on various international issues
3. After the end of the Cold War, the GHW Bush, Clinton, GW Bush, and Obama administrations all
followed this approach
US Economic Engagement to China