#USChinaTensions US-China economic tensions have been escalating, driven by strategic competition in trade, technology, and security. The tensions have led to a significant downturn in bilateral trade, with a 22% fall since 2018, and increased resistance from US policymakers to China's economic expansionism. Key areas of contention include¹ ²:
- *Trade Disputes*: The US has imposed tariffs on Chinese goods, reaching up to 145%, while China has retaliated with tariffs of up to 125% on American products.
- *Technological Supremacy*: The US has restricted sales of semiconductors and artificial intelligence chips to China, sparking concerns over global technological leadership.
- *Investment and Security*: The US has introduced restrictions on investments in China, citing national security concerns, and is reevaluating its economic relationship with China.
- *Global Economic Impact*: The tensions have profound implications for global trade, GDP growth, and economic stability, with potential long-term consequences for the world economy.
These tensions reflect a shift towards economic decoupling, driven by geopolitical rivalries and competition for global influence. The outcome will significantly impact global trade, economic diplomacy, and the future of international relations.