Huijiong Wang, Shantong Li and Yan Hong
Angela Ming Yan Poh and Mingjiang Li
This chapter reviews the competition between the United States and China at the global level and in the Asia-Pacific region, as well as existing impetus and efforts by both countries to strengthen engagement. The authors argue that the US–China strategic rivalry at the global level will be more manageable, given that China appears to be more interested in reforming some elements of the existing international system, rather than in establishing a fundamentally different global order. The more problematic aspect will be the security contentions between China and the United States in the Asia-Pacific region, where the United States has been a dominant power over the past few decades, and where a rising China has increasing political and economic interests. Leaders from both countries will need to demonstrate extraordinary wisdom in order to delicately manage the security rivalry in the region. More specifically, China will have to manage nationalistic sentiments and avoid an overtly hostile foreign and security posture especially against countries that it has disputes with. China will also need to control the temptation to curb Washington’s presence in Asia. As for the United States, the challenge is to manage its allies in order to avoid being inadvertently drawn into a conflict with China. Countries in the region will also need to play constructive roles by seeking to incorporate both the United States and China into new and existing economic and security institutions, instead of forming ‘alliances’ that could lead to further conflict and divisions in the region.
Bo Liang, Li Yan, Gary Quinlivan and Thomas W. Cline
As the largest emergent market and second largest economy, China is playing an important role in the global economy. China is transitioning from a major investment destination to one of the leading global investors. The United States is the top choice of international investment. Over the past five years, Chinese foreign direct investment (FDI) in the United States has been surging with a focus on the sectors of real estate, high-technology, new energy, and entertainment. This chapter explores China’s FDI in the United States by presenting background information on global FDI and China’s global outward direct investment (ODI), and examining China’s FDI in the United States at the industry and company levels. It also discusses the implications of China’s rapidly increasing ODI and provides recommendations for how to make the process constructive for both China and the United States. This chapter can also be a valuable resource for other countries facing radical FDI increase from China.