US-Chinese relations are recovering after months of bilateral friction and tensions related to climate change, US arms sales to Taiwan, a meeting with the Dalai-Lama in Washington, Google’s decision to no longer subject itself to Chinese censorship and most recently (and probably most importantly) Chinese currency exchange rate policies.

Chinese President Hu Jintao’s decision to accept US President Barack Obama’s invitation to attend the Nuclear Security Summit in Washington on April 12-13 and China’s willingness to reconsider its currency exchange rate policies possibly allowing the Chinese currency to become more expensive in relation to the US dollar seem to indicate that Beijing’s policymakers are set and willing to repair and strengthen relations with Washington.

The White House too seems to be determined to move beyond controversy and disagreements and its recent decision to postpone a decision (possibly indefinitely) on whether or whether not to label China a “currency manipulator” was received with relief in Beijing.

To be sure, Washington and Beijing will continue to disagree over international politics, economic and security in the years, but they will also continue “need” each other and the author Tiejun Zhang analyses why and how.

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