Obama-China Relations of to a Rocky Start

According to abcnews, the Obama administration and China are experiencing some strained relations due to the economic crisis.  China is the largest creditor to the U.S. government, but due to economic slowdown they are considering cutting back on the amount of U.S. government securities that they buy.  Most recently, tension has been shown through the "buy american" provision attached to the recently passed stimulus bill, as well as American views on the Chinese manipulation of currency.

The "buy american" provision includes iron and steel that will be used for upcoming public works projects.  The issue of currency value is not new to the current administration, but they have escalated their admonishment of Chinese behavior.  Vice President Joe Biden is quoted saying about China, "You're a major player on the world scene economically, and you've got to play by the rules that everybody else plays by."  China has historically undervalued their currency, making Chinese goods cheaper to Americans, giving them what some call an unfair advantage.

Meanwhile, the Chinese have blamed their economic problems on the Western financial institutions and their, "lack of self discipline" and "blind pursuit of profit".  It doesn't look like China is going to stop investing in the U.S. any time soon, though.  The problem is that China has invested so much in the United States, that we are on the verge of being held accountable.