Future challenges

However, even these outcomes could not completely paper over the deepening fissures in the China-U.S. relationship. Biden issued warnings about China's maritime disputes with neighboring countries. During the S&ED, U.S. officials also raised concerns about suspected economic espionage, accusing the Chinese Government of backing such activities. China denied such accusations and called for both countries to work together to develop an international code of conduct for cyber information sharing.

Differences on the issue of human rights also resurfaced during the talks. While the S&ED was ongoing, the U.S. State Department issued its annual global human rights report for 2014, which accused China of lessening its freedom of speech. One day later, China hit back with a report titled Human Rights Record of the United States in 2014, which points out that while the United States often comments on the human rights situations in many countries, it shows little if any initiative to address its own human rights problems, either internationally or in its own backyard.

In Washington, a debate on readjusting China policy after the 2016 general election is being staged publicly, as the fervor of parties formerly bullish about China-U.S. relations is cooling. Some politicians even advocate taking a tougher stance on China.

At the level of macro-economy, reservations held by the two sides with regard to the other have not dwindled despite the end of the recession after the 2008 financial crisis and the U.S. recovery. The United States believes that the Chinese currency yuan, or renminbi, is undervalued and presses China to speed up reform on the exchange rate. However, the U.S. attitude is seemingly at odds with that of the International Monetary Fund, which announced in late May that the yuan is no longer undervalued and it is currently mulling over including the renminbi in the special drawing rights basket of currencies.

Though the China-initiated Asian Infrastructure Investment Bank (AIIB) has upset Washington, it proved powerless to prevent most of its allies from joining. Chinese officials at the S&ED explained to the U.S. participants that the Chinese initiative has no intention of challenging U.S. leadership in global finance. However, the United States appears to be lobbying some of its allies to launch competing infrastructure investment initiatives. Washington is also trying to exert influence over the future operation of the AIIB.