With China's economy now the second largest in the world, Washington seeks Beijing's cooperation in rebalancing the global economy and sustaining global growth. With the United States focused on restoring its economic strength, Washington is seeking to achieve a so-called level playing field for U.S. firms that trade with and operate in China; to address cyber intrusions allegedly originating from China that target commercial and military secrets; and to stem violations of U.S. intellectual property rights in China. The Obama Administration has repeatedly assured China that it "welcomes a strong, prosperous and successful China that plays a greater role in world affairs," and China has stated that it "welcomes the United States as an Asia-Pacific nation that contributes to peace, stability, and prosperity in the region." They have also committed China's military to an ambitious schedule of high-level exchanges and modest operational cooperation with the United States military. Some in China believe that when the United States presses China to ease restrictions on freedom of speech and internet freedom, improve its treatment of religious practitioners and ethnic minorities, and respect the legal rights of its citizens, the United States' real goal is to destabilize China and push the Communist Party from power. An immediate concern is that China's use of coercion in disputes with its neighbors over territory in the East China Sea and the South China Sea could undermine the stability upon which the prosperity of the region depends. For a list of select upcoming events in the bilateral relationship, see Appendix C .

	Obama Administration Policy on China

With some in the United States concerned that a rising China poses challenges to the U.S. economy and to U.S. global leadership, and with many in China believing that the United States feels threatened by China's growing economic and military might, President Obama has declared that the United States welcomes China's "peaceful rise." Mindful of that history, China's new top leader, President Xi Jinping, has pressed for a U.S. commitment to a "new model" of U.S.-China relationship that explicitly seeks to avoid strategic rivalry or conflict between a rising China and this era's established power, the United States. In addition, the United States has sought to resolve trade disputes with China through the rules-based mechanisms of the World Trade Organization, and engaged with China on climate change through meetings of parties to the U.N. Congressional Action Related to China in the 113th Congress

The 113 th Congress has so far passed two laws with provisions related to China, P.L. Selected policy issues for Congress related to the bilateral relationship are summarized in the sections below, starting with security issues and Taiwan, followed by economic issues, climate change and renewable energy cooperation, and human rights issues. It has also been suspicious of the intentions behind the U.S. policy of rebalancing to the Asia-Pacific. The United States has long been concerned about the intentions behind China's military modernization. China's Reaction to U.S. Strategic Rebalancing to the Asia-Pacific

While concerns about cyber security have rapidly emerged as a top concern for the United States in the U.S.-China relationship, the U.S. strategic rebalance toward the Asia-Pacific is among China's top concerns. "However, China is not convinced." With China serving as North Korea's largest supplier of fuel and food supplies and its most powerful diplomatic ally, however, the United States continues to call on China to do more to leverage its relationship with Pyongyang to persuade it to avoid provocations and denuclearize. The comment was widely interpreted to be directed at Pyongyang. Adopted by China's National People's Congress in March 2011, the 12 th Five-Year Plan includes plans for: 
slower GDP growth than China has enjoyed in the past, with a target of 7% annual GDP growth over the five years of the plan; boosting domestic consumption as a percentage of GDP, in part by increasing wages for Chinese workers and improving China's social welfare net, so that citizens do not need to set aside so much of their incomes to pay for education, health care, and retirement; increasing the service sector's contribution to GDP; expanding urbanization, with a target of creating more than 45 million jobs in urban areas and increasing China's urbanization rate to 51.5%, an increase of four percentage points; prioritizing development of seven "emerging strategic industries," three intended to support China's goal of moving toward more environmentally sustainable growth, and four intended to support China's goal of moving away from labor-intensive low-end manufacturing; meeting ambitious energy and environmental targets, including increasing the proportion of non-fossil fuels in China's energy mix to 11.4% and reducing energy consumption per unit of GDP by16%.
The United States relationship with China touches on an exceptionally broad range of issues, from security, trade, and broader economic issues, to the environment and human rights. Congress faces important questions about what sort of relationship the United States should have with China and how the United States should respond to China's "rise." After more than 30 years of fast-paced economic growth, China's economy is now the second-largest in the world after that of the United States. With economic success, China has developed significant global strategic clout. It is also engaged in an ambitious military modernization drive, including development of extended-range power projection capabilities. At home, it continues to suppress all perceived challenges to the Communist Party's monopoly on power.
In previous eras, the rise of new powers has often produced conflict. China's new leader Xi Jinping has pressed hard for a U.S. commitment to a "new model of major country relationship" with the United States that seeks to avoid such an outcome. The Obama Administration has repeatedly assured Beijing that the United States "welcomes a strong, prosperous and successful China that plays a greater role in world affairs," and that the United States does not seek to prevent China's re-emergence as a great power. China, for its part, has pledged to follow "the path of peaceful development." Washington has wrestled, however, with how to engage China on issues affecting stability and security in the Asia-Pacific region. Issues of concern for Washington include the intentions behind China's military modernization program, China's use of its paramilitary forces and military in disputes with its neighbors over territorial claims in the South China Sea and East China Sea, and its continuing threat to use force to bring Taiwan under its control. With U.S.-China military-to-military ties improving but still fragile, Washington has struggled to convince Beijing that the U.S. policy of rebalancing toward the Asia Pacific is not intended to contain China. The two countries have cooperated, with mixed results, to address nuclear proliferation concerns related to Iran and North Korea.
While working with China to revive the global economy, the United States has also wrestled with how to persuade China to address economic policies the United States sees as denying a level playing field to U.S. firms trading with and operating in China. High on the U.S. agenda is commercial cyber espionage that the U.S. government says appears to be directly attributable to official Chinese actors. Other economic concerns for the United States include China's apparent backsliding on its World Trade Organization commitments, its weak protections for intellectual property rights, and its currency policy. In recent months, the United States has strengthened cooperation with China on efforts to combat climate change, while continuing to work with China on the development of clean energy technologies. Human rights remains one of the thorniest areas of the relationship, with the United States pressing China to ease restrictions on freedom of speech, internet freedom, religious expression, and ethnic minorities, and China's leaders suspicious that the United States' real goal is to end Communist Party rule.
This report opens with an overview of the U.S.-China relationship, recent developments in the relationship, Obama Administration policy toward China, and a summary of legislation related to China in the 113th Congress. The report then reviews major policy issues in the relationship. Throughout, the report directs the reader to other CRS reports for more detailed information about individual topics. This report will be updated periodically. A detailed summary of 113th and 112th Congress legislative provisions related to China is provided in appendices.