The U.S. subprime mortgage crisis in March 2007 and the financial crisis in September 2008, which led to the worst Great Recession since the Great Depression in 1930’s. The crises still affect global economy, including the European sovereign debt crisis and the U.S. national debt crisis. Although the U.S. has got rid of the Great Recession, its economy recovery remains slowly. In the meanwhile, the financial crisis had less impact on China, which passed through the crisis easily. On the contrary, China has gained several economic breakthroughs after the crisis. The financial crisis has been an important turning point, which may have result in the U.S. decline and China growth (the power transition between the U.S. and China). This study discusses the effect of the financial crisis to the U.S., China, and China-U.S. relations.
The time range of this study began from 2007 to 2011. The U.S. and China were the main research target countries. At first, the study compared the government policy for the crisis in the U.S. and in China respectively. Second, the study discussed China-U.S. relations from bilateral, regional, and global perspectives. In addition, through the concept of cooperation and difference. Finally, the study generalized the effect of politics and economy to China-U.S. relations. As a result, this study has 8 chapters. Chapter 1 is an introduction of this thesis and chapter 8 is the conclusion. Chapters 2-4 are about the impact, resolution, and effect of the U.S. and China during the financial crisis. Chapters 5-7 are about the bilateral, regional, global relations of the U.S. and China after the financial crisis.
The conclusion of this study is the financial crisis probably led the U.S. decline and China growth; however, that promoted the comprehensive and practical China-U.S. cooperation and positively coordinated differences. The U.S. has declined but still the most powerful country; China has been growing but still a developing country. On the bilateral relations, the U.S. and China know cooperation is the best way for both common interests. Moreover, they positively coordinate their disagreements. On the regional perspective, the influence of China has increased but the U.S. will decrease. Despite their disagreements in Asia-Pacific has raised, both sides will not break the relationship. On the global aspect, the U.S. always encourages China to participate in international affairs, and now China has turned more actively. In conclusion, China uses the principle of “struggle without breaking the relationship” to the U.S. that is more sophisticated. Besides, the U.S. also progressively adjusts the China policy. In the end, Taiwan issue has gradually not been the most important topic in China-U.S. relations. The U.S. and China will put their common interests in the first place. Taiwan must do what Sun Tzu said “The good fighters of old first put themselves beyond the possibility of defeat, and then waited for an opportunity of defeating the enemy.”