The extent of trade interdependence between China and the U.S. changes with the increasing volume and increasing imbalances of bilateral trade. While growing U.S. export dependence on the Chinese market suggests that seeking market expansion in China is one of the major objectives of the U.S. commercial diplomacy, China’s much higher export dependence on the U.S. market provides the U.S. with more bargaining power in trade negotiations. Our empirical studies indicate that China’s investment in the U.S. government bonds helps maintain ultra-low interest rates in the U.S., which in turn stimulates U.S. direct investment in China. Lastly, a comparative study of economic constraints on U.S.-China and U.S.-Japan commercial diplomacy finds that the lack of strategic trust between the U.S. and China explains why China often becomes the target of the U.S. trade politics despite the fact that the Chinese market is more open than the Japanese market.