The intricate web of U.S.-China relations paints a complex picture of economic interdependence, strategic competition, and a dynamic power struggle. From sanctions to trade, and investment to global influence, the evolving story reveals how the U.S. finds itself grappling with an increasing reliance on China’s economic prowess.
In the realm of economic sanctions, America’s extensive reliance on this tool could potentially be its downfall. Over the last two decades, sanctions have become the go-to foreign policy tool for Western nations, particularly the U.S. The significant economic power that China wields makes it unique among nations subject to sanctions, with its stability and liquidity enabling it to promote its financial systems internationally. Now, here’s the kicker: these Chinese-led parallel financial arrangements pose substantial systemic risks for the U.S. and its allies. And that’s not something to sneeze at! The irony is that the Western order that the sanctions were designed to preserve could be threatened by them.
The U.S. policy towards China has a dual nature. While there are efforts to limit China’s progress as a rival, the U.S. also benefits greatly from trade and investments with China. The challenge for the U.S. is its growing dependence on China’s economy, which is on track to become the world’s largest. You might say the U.S. is caught between a rock and a hard place.
On one hand, there’s the right-wing political factions and the military-industrial complex portraying China’s influence expansion and authoritarianism. On the other hand, business interests are pushing for cooperative U.S.-China relations. So, where does the U.S. stand? That’s the million-dollar question.
In response to the escalating strategic competition with the U.S., China is not only anticipating enduring turbulence but also seizing opportunities to elevate its global role. President Xi Jinping emphasizes China’s advantageous position and strives to expand overseas influence. China’s dedication to upholding international law and its participation in peacekeeping efforts, arms control, and international cooperation all illustrate its commitment to global stability. China’s responsible macro policy and initiatives like the Belt and Road Initiative demonstrate a commitment to international cooperation. The contrast between the U.S. rhetoric and China’s actions underlines the complexity of their global roles
But here’s where it gets really interesting: China, accounting for roughly 20% of global GDP, could exert soft imperial control over Asia, establishing hegemony without direct control but strong influence. This would grant China control over half the global economy, making it a primary beneficiary and director of the world economy.
Talk about a game-changer! This scenario underscores why focusing on reshoring and reducing economic dependence on China may not be enough to protect American interests.
The interdependence between the U.S. and China has serious implications for international security. China’s pursuit of influence over Asia and its potential threat to half of the global economy puts the issue of Taiwan’s defense in sharp focus for the U.S. Some believe that a focus on reshoring and reducing economic dependence on China might not be enough to protect American interests. The impact of U.S. sanctions and the response of an alliance of autocratic governments reshaping the global financial system are prompting a reconsideration of the effectiveness of punitive measures.
So, where does this leave us? The difficult reality for the U.S. is that its economic dependence on China puts it in a precarious position. Like a delicate dance, the two nations navigate their economic ties, strategic interests, and global influence. The U.S., traditionally a leading world power, finds itself in a challenging position, where it must carefully consider its actions and policies towards a formidable competitor. In the grand scheme of things, it’s clear that the U.S.-China relationship is no simple matter. The balance of power is shifting, and the stakes are high. In this fast-changing landscape, one thing is certain: the U.S. must tread carefully, understanding that its actions can have far-reaching consequences in a world where China continues to rise as a dominant economic force.
Research Scholar and Academic; Ph.D. in Political Science at the University of Pisa, Italy. Dr. Usman has participated in various national and international conferences and published 30 research articles in international journals.