USA

The China-US relationship is strained, but of immense importance for geopolitics. The editors of Table.Briefings bring you all the relevant news on China and the USA. The China-US relationship China's economic rise and its ambition to become a political, military and economic superpower have caused tensions in its relationship with the US, which would like to retain this role. The China-US relationship is characterized by political and economic differences. New disputes are constantly arising, leading to trade wars, sanctions and diplomatic conflicts. In view of China's continuous rise and America's self-image as the world's police officer, there is no improvement in sight. Historical development of Sino-American relations However, relations between China and the USA have not always been so tense. Officially, the two countries have maintained an intergovernmental relationship since 1844. At that time, however, it was still the Chinese Empire. While the European countries forced the empire into unequal treaties with the aim of exploiting China, the USA advocated an open-door policy. The desire was for all major powers to have equal access to China. America even called on European countries to recognize China's territorial and administrative integrity. At the end of the '20s, the USA also recognized the new Kuomintang government in China, but did not intervene in China's favour when Japan began to pursue a bloody expansionist policy in the '30s. It was only when Japan attacked Pearl Harbour in 1941 that the USA took part in World War II alongside China. Japan surrendered unconditionally. Sino-American relations: Taiwan conflict After the communist People's Army defeated the nationalist Kuomintang in the Chinese civil war, it founded the current People's Republic of China under head of state Mao Zedong in 1949. The Kuomintang fled to Taiwan, founded the Republic of China there and laid claim to sole representation. The American government recognized it. In the eyes of America, the Taiwanese government was the legitimate representative of the whole of China. This changed when there was a break between the Soviet Union and China. A rethink began in the White House. In 1971, the United Nations (UN) recognized the People's Republic of China as the sole representative of China. The following year, even the then US President Richard Nixon visited the People's Republic. The rapprochement between China and the USA went down in history as ping-pong diplomacy. Taiwan conflict causes Sino-American relations to break down The period of reform and opening-up policy from 1978 onwards triggered the first economic boom in China. As a result, ties between America and the People's Republic became ever closer. The volume of trade increased. However, the tiger economies also experienced an economic upturn. First South Korea, Singapore and Hong Kong, followed somewhat later by Thailand, Malaysia, Indonesia and the Philippines. First and foremost, however, was Taiwan, where political liberalization also took place from the '80s onwards. In elections, the people of Taiwan made it clear that they had no interest in becoming part of the People's Republic of China. The latter responded with threatening military gestures, which called America into action. China's claims to power in the Indo-Pacific region caused massive upheavals in Sino-American relations, which continue to this day. Indo-Pacific Security Alliance: Military alliance against China's power claims In September 2021, Australia, the UK and the USA founded the Indo-Pacific Security Alliance AUKUS. The abbreviation is an acronym for the three participating states (Australia, United Kingdom, United States). Although China is not mentioned in the agreement, the alliance aims to curb the growing influence of the People's Republic in the Indo-Pacific region. Observers speak of a scenario reminiscent of the Cold War. As part of the AUKUS security alliance, Australia is being supported in the development of nuclear submarines. Cooperation is also to take place in the fields of artificial intelligence, quantum technology and various cyber topics. China describes the agreement as a threat to regional peace and sees it as promoting the global arms race. Donald Trump: USA on course for conflict with China In 2016, relations between China and the USA deteriorated dramatically. The then new US President Donald Trump accuses the People's Republic of pursuing a one-sided economic policy, disregarding intellectual property and unfair trade conditions. In 2018, tensions reached a new high when Trump imposed punitive tariffs on imports from China. Initially, goods worth USD 50 billion were affected. Just one year later, it was already goods worth USD 500 billion – i.e. all US imports from the People's Republic. The trade dispute between the US and China finally escalated on Dec. 1, 2018, when Meng Wanzhou, CFO of Huawei and daughter of Ren Zhengfei, the founder of Huawei, was arrested in Canada. She is accused of circumventing US sanctions against Iran. Huawei on the US blacklist The Chinese telecommunications supplier Huawei is becoming a central topic in the trade dispute between China and the US, and not just because of the arrest of its CFO Meng Wanzhou. The then US President Donald Trump accused the company of using its 5G technology to spy on behalf of the Communist Party and the Chinese military. Trump introduced a blacklist on which he placed a total of forty Chinese companies. Acting US President Joe Biden added a further 59 companies to this list. Chinese companies on the blacklist will find it more difficult to access American technologies. US companies that want to trade with them need an exemption. America's blacklist: Decoupling, geopolitics and economic warfare Officially, the US blacklist is designed to remove companies from the global market whose technologies "facilitate oppression or serious human rights abuses". However, observers agree that geopolitical interests are behind this. The main aim of US policy towards China is to prevent the People's Republic from becoming a technology leader in future fields such as digitalization and a geopolitical world power. Relations between China and the USA are currently characterized by so-called decoupling. This is the unbundling of the American and Chinese economies. Politically, both parties are seeking new partners in geopolitics, while economically, imports and exports are to be reduced. China is also promoting the principle of dual circulation. The Communist Party sees this as strengthening the domestic market. What is the U.S. Innovation and Competition Act of 21 (USICA)? America's relationship with China is also overshadowed by the U.S. Innovation and Competition Act of 21 (USICA). A law passed jointly by Democrats and Republicans. It provides for greater subsidies for the establishment of technology centers and an increase in scholarships. A total of USD 250 billion has been earmarked for this. USD 52 billion for semiconductor production alone. The United States government wants to reduce its dependence on China. It speaks of a threat in connection with the People's Republic. In return, China has passed the Anti-Foreign Sanctions Law. This is a legal framework that defines the Communist Party's reactions to US sanctions. It allows for the punishment of individuals who engage in "discriminatory measures against Chinese citizens" or "interference in China's internal affairs". The Anti-Sanctions Law also grants Chinese citizens and organizations the right to sue for damages. American and Chinese space travel: the battle for space China is considered the world's number two behind America in the field of space travel. However, the People's Republic has challenged the space superpower with ambitious projects and is striving to become the technology leader in this field. With the equivalent of EUR 7.5 billion in 2020, China is spending more money on space travel than any other single country. And the country is succeeding. China has sent a probe to collect rock samples on the moon, a robot to Mars and a manned space station in orbit around the Earth. When the ISS project comes to an end in a few years, this will be the only human presence in space. The USA sees this as a challenge and has declared the next Space Race. A competition that already took place in the '60s during the Cold War with Russia. For China, however, space travel is more of an end in itself, scientists believe. It is about economic growth, military interests, national self-confidence, research and development and less about defeating America. China is also pushing ahead with its space program on its own because the USA has banned cooperation with the People's Republic. This is why the Chinese are not involved in the International Space Station or the Artemis lunar program. China is therefore planning to complete a moon base in 2036. Together with Russia, which wants to withdraw from the ISS project. The USA and China are the two largest economic powers and technology drivers in the world. Their laws and political measures influence all economies and geopolitics as a whole. That's why the Table.Media editorial team brings you all the relevant news on Sino-American relations.