#USChinaTensions

The relationship between the People's Republic of China (PRC) and the United States (US) is one of the most important foreign relations in the world. It has been complex and, at times, tense since the establishment of the PRC and the retreat of the government of the Republic of China to Taiwan in 1949. Since the normalization of relations in the 1970s, the relationship between the US and China has been marked by persistent disputes, including China's economic policies, the political status of Taiwan, and territorial disputes in the South China Sea. Despite these tensions, the two nations have significant economic ties and are deeply interconnected, while engaging in strategic competition on the global stage. As of 2025, China and the United States are the second and first largest economies in the world by nominal GDP, as well as the largest and second largest economies by GDP (PPP) respectively. Together, they represent 44.2% of global nominal GDP and 34.7% of global PPP-adjusted GDP.