Daniel W. Drezner

Fall 2009

"Bad Debts: Assessing China's Financial Influence in Great Power Politics"

Journal Article, International Security, issue 2, volume 34

By Daniel W. Drezner

As a result of the recent financial crisis, the United States has grown increasingly dependent on foreign sources of credit. U.S. policymakers worry that China, in particular, could use its financial power to influence U.S. foreign policy. However, two case studies (the contestation over the regulation of sovereign wealth funds and the protection of Chinese investments in the United States) demonstrate that their concerns are somewhat exaggerated. The current relationship between the United States and China is one of mutual dependency. Unless the balance shifts, China will be able to resist U.S. entreaties, but not coerce the United States into changing its policies.