Introduction: The World As Beijing Sees It
U.S. economic policy is not the only force at play threatening to disrupt the deep economic ties between the People’s Republic of China (PRC) and the United States (as discussed in part 1 of this article series). Chinese officials have also been driving a wedge. From the launch of the National and Medium- and Long-Term Program for Science and Technology Development (PRC State Council, 2005) to Made in China 2025 (PRC State Council, 2017), China has consistently pushed for self-sufficiency in specific sectors, limiting foreign exposure where possible . As the Trump Administration has adopted a more confrontational trade posture with China, introducing trade and investment restrictions, Beijing’s plans have only been accelerated.
However, the additional forces driving apart the world’s two largest economies are secular economic trends. The PRC faces a shrinking, shifting workforce that threatens to undercut its global manufacturing status, and a looming middle-income trap that encourages Beijing to compete with Washington in high-value-add sectors. Looking forward, the economic shock from the COVID-19 pandemic will likely make the United States and the PRC further averse to interdependence, if the pandemic has a lasting impact into the future.
Read the full article in The Jamestown Foundation's China Brief.
More from CNAS
CommentaryWhy Biden Should Extend Vaccine Diplomacy to Sanctioned States Like Venezuela, Iran, and North Korea
Extending vaccine diplomacy to heavily sanctioned countries will allow Washington to both hedge against growing Chinese-Russian influence abroad and help alleviate global huma...
By Jason Bartlett
PodcastAnalyzing Biden's New Approach to Sanctions
Sanctions are becoming an increasingly important part of the Biden administration's foreign policy toolkit. Carnegie Council Senior Fellows Nick Gvosdev and Tatiana Serafin di...
By Rachel Ziemba
ReportsSanctions by the Numbers
Cyberattacks pose a serious threat to U.S. national security and the integrity of the global commerce and financial system, especially when state-sponsored actors conduct and/...
By Jason Bartlett & Megan Ophel
PodcastThe Myths and Realities of China’s Digital Currency
Yaya Fanusie joins WPR’s Elliot Waldman for a conversation about what China’s digital currency is and what it’s not. Listen to the full conversation from World Politics Revie...
By Yaya J. Fanusie