The interdependence between China and the United States: a two-level analysis

Abstract This paper constructs a two-level model to explain China–U.S. relations. We find that at the state level, the interdependence between China and the United States, which comes from their bilateral trade and foreign direct investment, is asymmetric. Such asymmetric interdependence favors the United States in pushing the Chinese government to make concessions when they have conflicts. However, at the society level, China can penetrate into American society to intervene or influence American foreign policymaking. In this paper, it is argued that the outcome of China–U.S. relations is determined not only by the asymmetric interdependence at the state level or societal penetration respectively, but also by the interaction of these two factors in the process. Finally, the new development of China–U.S. relations since the inauguration of the Obama administration is also examined.