This chapter examines the conflicting objectives involved in U.S. policy toward China. Washington regards China’s military and economic rise as threatening Asian security and U.S. hegemony, whereas China’s economic growth presents both opportunities and challenges. Balancing these objectives is crucial because the U.S. and China are the most powerful countries in the world economically, politically, and militarily. Key terms include: currency manipulation, offshoring, outsourcing, peaceful coexistence, and totalitarianism.