Contrary to popular belief, stabilised US China relations are paramount for the United States, influencing economic prosperity, technological advancement, and global security. The intricate interdependence between these two superpowers shows just how important it is to have a balanced and cooperative approach to ensure mutual benefits and global stability.
Economic Interdependence
The economic impact of US China relations is very profound. In 2024, the United States imported goods worth approximately $462.62 billion from China, underscoring China’s role as a pivotal supplier to the American market. Conversely, the U.S. goods trade deficit with China stood at around $295.4 billion in the same year, highlighting the significant trade imbalance.
This US China relation in trade is not one-sided. American businesses and consumers benefit from affordable goods, while Chinese manufacturers gain access to the vast U.S. market and their technology. Disruptions in this relationship, such as tariffs or trade wars, can lead to increased costs for U.S. consumers and businesses, as evidenced by inflationary pressures following recent trade conflicts. Technological and Resource Dependencies
The U.S. technology sector heavily relies on critical materials, many of which are predominantly sourced from China. Notably, China refines over 90% of the world’s rare earth elements, essential for manufacturing high-tech devices, renewable energy systems, and defence applications. Trade tensions jeopardize this supply chain, potentially hindering technological innovation and production in the U.S.
Defense and Security Dynamics
Military spending is a significant aspect of US China relations. In 2023, China’s defense budget was approximately 2.096 trillion yuan (about $296 billion), while the U.S. allocated around $916 billion to defence. While the U.S. maintains a higher defence expenditure, China’s consistent budget increases reflect its growing military capabilities.
Absence of any kind of US China tensions can prevent an arms race and reduce the risk of military confrontations. Collaborative security efforts and open communication channels are essential to address global challenges like terrorism, nuclear proliferation, and regional conflicts.
Global Supply Chain Considerations
The global supply chain is intricately linked to US China relations. US China tensions in trade have prompted companies to reassess their supply chains, leading to shifts in manufacturing bases. Countries like Vietnam, Malaysia, and Singapore have benefited from investment diversification as companies seek alternatives to China. However, such transitions require time and resources, and a stable China-U.S. relationship ensures smoother global trade operations.
US China Relations: A Better Way for the World Forward
Stabilising US China relations is undeniably in the United States’ best interest. Economic prosperity, technological advancement, and global security are all intertwined with the nature of this bilateral relationship. By fostering cooperation and addressing challenges collaboratively, both nations can contribute to a more stable and prosperous global landscape. Moreover, any US China tensions can prove to be fatal for them and the world. This highlights just how important it is to have good relations between these superpowers.
