Offers a formal model of the relationship between economic interdependence and political relations and applies this model to the case of China and its neighbors. The book is novel because it provides a theoretical overview of economic interdependence and its effects on political relations. Furthermore, it combines a quantitative and case study approach to understand China's interstate relations by studying dyadic interactions, using economic, political, institutional and military data, between China and its neighbors. It argues that in order to understand China's rise, we need to understand how and under what circumstances economic interdependence can affect political relations.