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Interdependence Liberalism On Sino U.S. Relationship

2157 words - 9 pages

Introduction
Sino-U.S trade relationship becomes a main concern as it shows economic interaction between the world largest economy and the second largest economy. After China joined World Trade Organization (WTO) in 2001, there is a sharp increase in economic performance. Therefore, the Sino-US trade relation from 2001 to 2011 will be explored in the following sections. Generally, Sino-U.S relationship is peaceful in terms of interdependence liberalism. In terms of Marxism, it is an asymmetrical relationship.

Application of Interdependence Liberalism in Sino- U.S. trade relation

Interdependence Liberalism
Karrbo and Ray (2010) define Liberalism as “a theoretical perspective emphasizing interdependence between states and sub-state actors as the key characteristic of the international system” (p.6). International affairs are applied by strong faith in reason and rational principles (Toru, 2013). Long run cooperation is preferable because of mutual interest (Toru, 2013). For Interdependence Liberalism, it is believed that interdependence reduces inter-state conflict. During the process of modernization, the level of interdependence increase. Trading increase interdependence among state that economic interdependence leading to political integration and peace (Toru, 2013). The costs of using force increased and the benefit decreased that military force become a less useful instrument of policy (Toru, 2013). States are more concern with economic and social affairs. They cooperate together to achieve some goal. The economic dependence between international actors is mainly reflected in the volume of trade between the actors, the number of foreign investment, import and export accounted for the proportion of GDP, net capital flows amount and proportion of the total share capital structure and the output value of transnational corporations (Keohane and Nye, 2001).

Application in Sino-U.S. trade relation
The U.S. and Chinese economies are the first and second largest in the world respectively, and are heavily interdependent (Lawrence, 2013). First, WTO accession agreements caused U.S. have benefited from more access to Chinese markets and vice versa. The natural outcome of trade leads to peace that the two countries need to be interdependence (Baron de Montesquieu, 2001). Second, both U.S and Chinese government keep a peaceful attitude toward each other and even the idea of Chimerica is suggested by U.S.

Changes of Sino-U.S. trade relation by joining WTO
Partnership between China and U.S are based on money and trade. In 2001, China became a member of the World Trade Organization (WTO) which brought great changes in Chinese economy. Both U.S. and China prefer to increase interdependence with each other by welcoming China to join WTO as both of them can enjoy many benefits. China is then recognized by the United States and the world economic community as an equal partner (Chow, 2001). They made many agreements on strengthening China-US constructive...

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