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The relationship between the People's Republic of China (PRC) and the United States (US) has been complex and at times tense since the establishment of the PRC on 1 October 1949 and the subsequent retreat of the government of the Republic of China to Taiwan. After the normalization of relations in the 1970s, the US–China relationship has been marked by persistent disputes including China's economic policies, the political status of Taiwan and territorial disputes in the South China Sea. Despite these tensions, the two nations have significant economic ties and are deeply interconnected, while also engaging in strategic competition on the global stage. As of 2025, the US and China are the world's largest and second-largest economies by nominal GDP. Collectively, they account for 44.2% of the global nominal GDP.