Study on the Debt Problems in Sino-US Relations, written by Sun Haiyong, Assistant Research Fellow at the SIAS, was published by the Current Affairs Press in May 2015.

A pioneering work in the Chinese academia, the book examines Sino-US relations by looking into China’s ownership of US debt – a subject that’s been raising concerns in recent years. The hegemony of the US dollar is the basis of America’s debt financing capabilities around the world. Due to their domestic and international economic policies, an unprecedented credit-debt relationship has been set up between China and the US. Although China seems to be more vulnerable in this interdependent relationship, holding US debt, on the other side, has its specific strategic significance for China. It has also greatly affected economic, trade and security issues between the two countries.

China’s international economic and financial status has been on the rise, with the country adjusting and developing its economic policies. China’s effort to implement the “One Belt, One Road” Strategy, to build new financial institutions, and to increase direct investment in the US may help ease the negative impacts of debt conflicts. Taking account of the scale and its influences, China’s ownership of US debt will continue to affect bilateral relations in the long run.