Working Paper No. 476 Opportunities and Challenges for China-US Economic and Trade Cooperation in the Process of US Re-Industrialization

Although the US-China relationship has been strained by the latter’s economic and military rise over the last decade, China’s development can benefit the US in a variety of ways. This paper argues that the most important facet of the US recovery is the reindustrialization of a largely service-based economy. To accomplish that goal, this paper suggests that the United States end barriers to Chinese FDI and eliminate export controls set up during the Cold War. The paper also points out a wide range of areas where greater US-China cooperation is mutually beneficial, emphasizing greater cooperation in basic research and environmental regulation.