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Sino-US Relation after Financial Crisis: an Analysis Through Game Theory

Author: ZhaoZhenJiang
Tutor: ZhengXianWu
School: Nanjing University
Course: International relations
Keywords: Game Theory Financial crisis Sino-U.S. Relation Cooperation Competition
CLC: D822.3
Type: Master's thesis
Year: 2011
Downloads: 542
Quote: 0
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Sino-US relationship is one of the world’s most important bilateral relationships. By the financial crisis,the international status of the United States has a certain decline, but its superpower standing is hard to shake in the short term. At the same time, it is a indisputable fact that china’s international position has been improved due to the sustained economic growth. After the financial crisis, the United States has to keep the strong position of Dollar to prevent the decline of hegemony, especially in financial area,and do its best to maintain the existing international political and economic order. While for China, its continued rising may become a challenge to the dominant state, simultaneously, China should firmly stand in developing countries camp,and reform the irrational international political and economic order to create a stable external environment for its economic development. Can be said that Sino-US relation has gone beyond the traditional bilateral relationship,it is on its way to becoming the relations between developing and developed countries,emerging and existing economic countries, and rising and dominant countries in miniature.This article consists of six parts. The first part is the introduction which proposed the present research of Sino-US relation after the financial crisis. The second part sets forth the game theory and explains that the Sino-US relationship confirms to the double game theory. This part emphasis the basic model of cooperative game and non-cooperative game in double game, and explores the possibility of conversion from non-cooperative game to cooperative game. The third part analysis the subtle changes in international status of China and the United States, and the changes of international environment and domestic public opinions, concluded that the competition and cooperation are coexisting in Sino-US relationship. The forth part describes the Sino-US relation from the political,economic, energy and climate aspects. The fifth part based on the case of China’s buying U.S. treasury bonds, analysis the possibility of various decision-making of both sides,and finally surveys the fluctuation of Sino-US relationship based on the Game of the two countries in the U.S. treasury bonds problem. The last part of the article proposes some recommendations of the stability of Sino-US relation based on the above analysis.This article finally found that the relationship between China and United States is not good enough to be allies,and not bad enough to be enemies. The coexistence of competiton and cooperation between China and United States is a reflection of their fundamental strengths and international environment. On this point, it is normal that Sino-US relation fits and starts in short term,and is not necessary to do too much interpretation. The author believes that it is important for the two countries to search for a mechanism to keep the cooperation,and to maintain the stability of competitive Sino-US relationship without giving up the possibility of cooperation in the future,which is consistent with the interests of both countries.

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CLC: > Political, legal > Diplomacy, international relations > Chinese Foreign > External Relations > Relations with Governments
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