Question

Which of the following best describes the relationship between the United States and China?

A)Both are dependent equally on each other for continued economic success.
B)Both are dependent on Japan after losses experienced during the economic downturn.
C)China wields more power because it holds so much U.S. debt.
D)The U.S. wields more power because it buys so many of China's manufactured goods.

Answer 1

The statement that best describes the "relationship" between the "United States and China" is that "both are dependent equally on each other for continued economic success".

Step-by-step explanation:

• The United States imports most of its electrical equipment from China. On the other hand, China imports most of its aircraft, automobile, microchips from the United States.

• The ceasing of this trade between the two countries for some or the other reasons can adversely affect both the countries economically.

• Thus, to secure continued economic success, these two countries need to function harmoniously.

Answer 2

The answer is; A

The US imports more from China than China imports from the US hence any trade war would hurt Chinese exports and reduce its foreign exchange earner. On the other hand, China owes the U.S $1.7 trillion in sovereign debt hence China wield leverage over the US in that if China opts to reduce the holdings, then the US economy would slow.