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After a month of buildup Chinese Vice Premier Wu Yi finally kicked off the third U.S.-China Strategic Economic Dialogue on Dec. 12 — by warning the U.S. delegation against politicizing the two-day talks.

This month’s dialogue is a political tool for both sides; the forum was created in December 2006 precisely for this reason. China’s emergence as an economic superpower is giving Beijing more geopolitical sway than ever before, motivating Washington to elevate and merge its economic dealings with China into its wider geopolitical concerns.

China's GSP in Billions USD - GRAPH

After two rounds of talks, the U.S. and Chinese delegations have grown savvier in using the forum both as a tool to manage their bilateral relationship and domestic politics. Each side often offers pre- and post-show sweeteners to assist the other’s ability to bolster support at home, giving both more political slack to negotiate effectively during the talks.

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