"The rapid pace of economic integration between China and the United States, while benefiting both sides overall, has made the trade relationship increasingly complex. On the one hand, China's large population and booming economy have made it a large and growing market for U.S. exporters. Over the past decade, China has been the fastest-growing market for U.S. exports. U.S. imports of low-cost goods from China greatly benefit U.S. consumers by increasing their purchasing power. U.S. firms that use China as the final point of assembly for their products, or use Chinese-made inputs for production in the United States, are able to lower costs and become more globally competitive. China's purchases of U.S. Treasury securities (which stood at $907 billion in October 2010) help keep U.S. interest rates relatively low. On the other hand, many analysts argue that growing economic ties with China has exposed U.S. manufacturing firms to greater and what is often perceived to be, 'unfair' competition from low-cost Chinese firms. They argue that this has induced many U.S. production facilities to re-locate to China, resulting in the loss of thousands of U.S. manufacturing jobs. Some policymakers have also raised concerns that China's large holdings of U.S. government debt (which stood at $907 billion as of October 2010) may give China leverage over the United States."
CRS Report for Congress, RL33536
United States. Department of State, Foreign Press Centers, Bureau of Public Affairs: http://www.fpc.state.gov/