Since the year 2000, the U.S - Chinese relations have witnessed some changes in the context of wide ranging and far reaching developments in the world. The once imbalanced ties between the two countries have been receding, giving place to new shifts. The spectacular economic growth of China in the last three decades and the U.S economic decline are the main factors which account for these shifts - the shifts in the relations between the U.S, still the super power with preeminent military power, and China - a rising power in both economic and military terms. The shifts in the relations between these two countries have made and are still making great impacts on the world situation, especially in the Asia-Pacific, which receive much attention from all countries, especially the middle and small ones. The reading of great power interactions and predicting its consequences in the global scale is becoming all the more important factor in policy - making process. The article reviews the U.S China relations in the first decade of the 21st century and gives some assessments in this connection.