This report provides an overview of China's economic development, challenges China faces to maintain growth, and the implications of China's rise as a major economic power for the United States. From the Summary: "China's economy and its economic policies are of major concern to many U.S. policymakers. On the one hand, U.S. consumers, exporters, and investors have greatly benefited from China's rapid economic and trade growth. China's large holdings of U.S. securities have helped keep U.S. interest rates relatively low. Many analysts hope that China will make positive contributions to a global economic recovery. On the other hand, the surge in U.S. imports of Chinese products has put competitive pressures on various U.S. industries. Many U.S. policymakers have argued that China maintains a number of economic policies that violate its commitments in the World Trade Organization and/or are harmful to U.S. economic interests, such as its currency policy. Concerns have also been raised over China's rising demand for energy and raw materials (and the impact of that demand has on world prices), increased pollution levels, China's growing FDI [foreign direct investment] (such as in energy and raw materials) around the world, including countries where the United States has political and human rights concerns, and the potential implications of China's large holdings of U.S. debt. The global economic crisis has also raised concerns over the future pace of Chinese economic reforms."
CRS Report for Congress, RL33534