Since the Trump administration has taken over, the decisions taken and policies introduced have been quite harsh for most of the world. The new administration shifted its priority areas. Firstly, the Trump administration withdrew from WHO, which came as a big surprise because WHO is one of the most crucial and prominent special agencies of the UNO.  Similarly, previously, US President Donald Trump had implemented tariffs on Canada and Mexico, as well as China. Yet again, Trump has imposed 125 percent Tariff  on China, meanwhile pausing the previously appointed tariffs on the rest of the states. Trump’s second term seems to be more hawkish than the previous one.

Trump’s commercial policies are hazardous for all states; however, they can be more deleterious for import-oriented economies like Pakistan

Additionally, the funding of various NGOs, which were funded by American Aid was also cut off. This negatively affected Asian states, where such NGOs and their humanitarian efforts were vital. Though, Trump’s commercial policies are hazardous for all states; however, they can be more deleterious for import-oriented economies like Pakistan. The world has seen the negatives of the previous trade war between the USA and China, which disrupted and shifted global supply chains and raised global inflation levels. Today, the US-China competition is running high as the US is continuously trying to prevent China from rising and China is retaliating in economic, technological, political and strategic ways. Their competition lies in several key areas which has impacted the global community.

In terms of semi-conductors and chip manufacturing, US holds the dominant position and is collaborating with states like Taiwan

Firstly, in terms of semi-conductors and chip manufacturing, US holds the dominant position and is collaborating with states like Taiwan in this field. China is lagging behind but is trying to reduce its dependency on foreign chips and semi-conductors which are used in a variety of technical and technological fields and can be a security concern for rival states. In the year 2024, Chinese chip designs sales increased by 11.9% as compared to the previous year. It is due to the use of the chips in sensitive domains, which makes this competition highly important.

Deepseek’s training budget was just 5.5 million, meanwhile, ChatGPT’s training budget was $100 million

Furthermore, both states are competing in terms of technological advancements. China is on top here. It had previously launched Deepseek, an AI model rivaling ChatGPT. Deepseek became popular worldwide due to its cost-effectiveness and efficacy. For instance, Deepseek’s training budget was just $5.5 million, meanwhile, ChatGPT’s training budget was $100 million. Hence, this was another wakeup call for the Trump administration to counter China’s growing technological influence.

Not only this, but China is also playing a key role in public diplomacy and displaying its soft power. Recently, American steamer IShowSpeed visited China and showed China’s culture, state-of-the-art technological growth and infrastructure through his trip. This tour has been beneficial for China in terms of tourism and promoting pro-China narratives in the West. Hence, the Chinese have cunningly utilized marketing strategies to promote a positive image of China, which is lacking in American public diplomacy.

USA’s long-term partnership with Japan in East China sea and its support for claimant states in South China sea is a bone of contention between China and the USA

In addition to this, the US-China tensions remain high due to some other key factors as well, such as the Taiwan issue, South China Sea competition, East China sea issue, etc. In terms of Taiwan and South China Sea, USA’s growing military presence and naval exercises have resulted in an insecure China. On the other side, America fears a hegemonic China and aims to protect American as well as the American allies’ interest in these regions. In this regards, USA’s long-term partnership with Japan in East China sea and its support for claimant states in South China sea is a bone of contention between China and the USA.

Economically, the commercial ties between both states have been sore as the US accuses China of its unfair trade policies and currency devaluation tactics and China accuses America of its high tariffs on Chinese goods and sanctions on Chinese companies. Both states restrict their rival’s companies. For instance, China has as of now, restricted 18 US companies(mostly defense-based).

The US considers China’s actions and response as hegemonic retaliation, meanwhile, for China, its assets in South China Sea and Taiwan are under threat 

In short, both sides are in a perpetual security dilemma. The US considers China’s actions and response as hegemonic retaliation, meanwhile, for China, its assets in South China Sea and Taiwan are under threat due to American interference. Years of American interference has provoked China to rise with even more speed and efficiency. Hence, the US-China standoff can be hazardous for various states, which would have to balance between both sides. On one hand, some states are dependent upon the US for security reasons as they fear China’s debt-trap diplomacy. On the other hand, many states are dependent upon China for their economy and trade. Some states are able to balance such as India, which is though China’s regional rival but is also collaborating with China in terms of trade. Hence, Pakistan must learn to balance between both sides as well, as both are its crucial strategic partners.

Disclaimer: The opinions expressed in this article are solely those of the author. They do not represent the views, beliefs, or policies of the Stratheia.