September 20, 2018
China and America May Be Forging a New Economic Order
“New U.S.-China Tariffs Raise Fears of an Economic Cold War,” proclaimed a Washington Post headline. The New York Times alleged that the United States and China were already “on the cusp” of such a “new Cold War.” Driving this hysteria was the Trump administration’s Monday announcement unveiling tariffs on an additional $200 billion of Chinese imports, followed nearly immediately by a Chinese promise to retaliate. This back-and-forth has been ongoing since January, and a resolution does not seem anywhere close, if one’s even possible.
As the U.S.-China competition expands across multiple domains, there are even worries that trade tensions could, over the long term, make the prospect of a military confrontation between the two more likely. Which raises the urgent question: How does this end?
It’s perhaps simpler, and certainly more rhetorically arresting, to predict a new Cold War, resulting in a global economy split between two power centers. But the reality of where Washington and Beijing are most likely to arrive in the next decade is far more complex. The United States and China are forging a new, uncharted gray area—not quite the economic bifurcation that characterized the U.S.-Soviet relationship at the height of the Cold War, but far from the high degree of interdependence seen in the early-21st century. Broad U.S. support for a harder economic line on China, a complicated domestic political landscape within China, and both countries’ recognition of the need for a healthy diversification of their economic relations will likely mean a new kind of relationship for the United States and China—and, by extension, a potentially new backdrop for the order of our world.
Read the Full Article at The Atlantic
More from CNAS
-
Syria: What Happened and What Comes Next
Video
After more than a decade of civil war involving major interventions from foreign powers, over the past week a rebel alliance incredibly rapidly gained control of city after ci...
By Richard Fontaine
-
The Future of Russia and China in Central Asia
Podcast
Despite the many proclamations that Russian and Chinese interests would collide in Central Asia, Moscow and Beijing continue to work together in service of their shared object...
By Andrea Kendall-Taylor & Jim Townsend
-
Russia and China in Central Asia
Reports
Executive Summary Despite the many proclamations that Russian and Chinese interests would collide in Central Asia, Moscow and Beijing continue to work together in service of t...
By Andrea Kendall-Taylor, Lisa Curtis, Kate Johnston & Nathaniel Schochet
-
‘Trump Will Use His Strength For Peace': Ex White House Official
Video
Lisa Curtis, Director of Indo Pacific Security Program at the Centre For A New American Security, says that in his second term, Donald Trump has learnt to be careful with his ...
By Lisa Curtis
