The relationship between China and the US has never been easy. While there have been times of relative ease, much of the relationship has been tense as both countries throw their weight around.

The relationship currently between the two counties is much like it has been for the past decades: areas of cooperation and mutual interest coupled with incompatible values and fear of interference. The flow of goods, services, and labor between the two states has helped to stabilize the relationship. No matter how bad things may get in policy or diplomacy, the mutual benefits of trade make sure that both sides stay reasonable even when the rhetoric gets provocative. Direct investment, however, is an even more powerful form of relationship.

Unlike commercial trading partners, where businesses develop contractual relationships with suppliers, distributors, and merchants, investment requires both parties (investor and investee) to form a close relationship. Whereas a commercial partnership sees terms negotiated and partnerships shift, investment ensures a long-term and intimate commitment from both parties. And creates more disincentive for conflict.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

John Artman

John Artman is the Editor in Chief for TechNode, the leading English information source for news and insight into China’s tech and startups, and co-host of the China Tech Talk podcast, a regular discussion...