This study examines the major issues involved in the bilateral economic relations between China and the United States. It illustrates the potential for cooperation between countries of different social systems and levels of development. This work analyzes the political and legal systems as well as laws relating to foreign economic exchanges of both countries. After a brief introduction to the bilateral economic system, the author describes the political and legal systems relating to foreign economic relations of both countries respectively. He further illustrates issues relating to the bilateral relationship by examining relevant case studies on finance, U.S. export control laws, U.S. antidumping and countervailing duty laws and textile trade. In conclusion the author suggests necessary and realistic alternatives to promote better bilateral relations.