The global financial crisis erupted in 2008; both the American and Western economies have suffered a severe blow. However, a large economic system unexpectedly emerged in the East. China is now in a position to challenge America's decades-long dominant position in the economic field. Launched in the mid-1990s, China's manufacturing industry has developed rapidly to generate billions in exports, and China has been given the title "factory of the world" (BBC). By the end of 2010, China, with a GDP of $5.8 trillion, surpassed Japan's GDP of $5.48 trillion, becoming the world's second largest economy (BBC). China has also become America's largest holder of foreign securities, surpassing Japan. Since then, China has been seen as the United States' biggest economic adversary. Some economists even say that in 10 years China will be the same size as the US economy. No matter whether or not China will reach the size of the US economy in 10 years, after forty years since the United States first opened trade with China in 1972, the US economy is gradually relying on Chinese economy and will collapse without the strength of the Chinese market. In 1972, President Nixon visited China and declared free trade between America and China, a country that has been isolated from the West since 1949. Although most people remember President Nixon with his Watergate scandal, he also opened a new era of trade with the People's Republic of China. Nixon was in fact known as an anti-communist and his presidency occurred during the Cold War, an era of political and military tension between the United States and the Soviet Union. In 1949, Chairman Mao Zedong founded the People's Republic of China. Known as a communist, Mao was Stalin's biggest supporter at that time. China's alliance... half of the paper... Susan V. "US-China Relations: An Overview of Policy Issues." Federation of American Scientists. Federation of American Scientists, n.d. Web. January 20, 2014. Morrison, Wayne M. “China's Economic Growth: History, Trends, Challenges, and Implications for the United States.” Federation of American Scientists. Federation of American Scientists, n.d. Web. January 20, 2014. Morrison, Wayne M., and Marc Labonte. “Chinese Holdings in U.S. Securities: Implications for the U.S. Economy.” Federation of American Scientists. Federation of American Scientists, n.d. Web. January 13, 2014.PBS. “General Article: Foreign Affairs.” Public broadcasting service. PBS and Web. January 15, 2014. Rawski, Thomas G. “The Rise of the Chinese Economy.” Foreign Policy Research Institute. FPRI and Web. 26 January 2014. World Economic Outlook Database. Np: IMF and International Monetary Fund. Network. February 2. 2014.