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Due to the clash of interests between China and United States, and due to the emergence of China as an economic power United States fears that China in future will dominate the world affairs. And to contain China they have formed alliances with the states like Australia, India and Japan since long time so that they should encircle China and put pressure on her in any future conflict. But the China is avoiding any conflict with the United States and any other state because China believes in the peaceful coexistence. The US presence in the Taiwan and its selling of weapons to Taiwan represent a greater threat to the Chinese integrity and with the defence alliance with the Chinese neighbors show that US has some other reservations over the emergence of China. The presence of US in Iraq and Afghanistan has created a lot of trouble for the Chinese and in future they might not be too patient with these developments and they can interfere in the global affairs, and that will lead to the conflict with US and this process will lead a new Cold War which would be inevitable for China to replace the US as a global power.