US and China cannot avoid each other
US had been the dominant trade partner who used to call the shots till few years back, be it Japan or China or Europe or India. But in the last few years, the US has been recklessly living on borrowed money, while other countries, especially China, started becoming more prosperous by generating trade surplus year after year.
And today, China is the largest investor for US in the US treasury bonds. In other words, but for China, there could be a big shortfall in loan funds for US to keep living in the lavish manner.
Also, today for China, US accounts for nearly 30% of it’s total exports and over 40% of all hi-tech imports. So, China can in no way afford to get into a tussle with US. So if there is a recession in US, then it can also pull down the Chinese economy along with it.
Other than that, the massive prosperity of China over the last ten years, has helped it to increase it’s clout over many countries across the globe including North Korea, South Korea, Japan , Russia, Iran and North Korea.
So if US needs to get anything done with any of these countries, it seeks the intervention or the help of China as needed. Today, China is the biggest market for most of the US majors across industries, outside US and Europe. For example, for GM and FORD and also for Apple , China is the second or third largest market in the world.