Abstract

China and the U.S. emerged from their face to face meetings at the Strategic and Economic Dialogue having agreed on a variety of measures and with promises of future cooperation essentially placing bandages over the wounds that had developed in the relationship over issues such as the territorial disputes in the South China Sea. Some actions this month showed signs of potentially healing the relationship such as the cooperation in concluding the Iranian nuclear deal, and at other times the bandages seemed to provide little relief such as in the realm of cyber security. A new issue has emerged as the Chinese stock market is losing value at a rapid pace and the Chinese government felt compelled to step in to stop the bleeding. Continuing to treat these wounds as well as avoiding self-inflicted injury will be key as President Xi Jinping’s state visit to the U.S. approaches. The following summarizes key issue areas emphasized by the U.S. and China during July 2015.

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