How the US is dealing with China’s economic hardships

U.S. Commerce Secretary Gina Raimondo focused on managing trade issues between the two countries during …
  • The intense global economic rivalry between the US and China is leading to a fierce competition, particularly in the advanced technology sector. While Washington imposes measures to limit the export of high-tech products to China, Beijing is not sitting idle. A recent example is Intel, the giant US computer chip producer, retracting its decision to acquire Israel's semiconductor chip manufacturer, Tower Semiconductor. Intel had initially planned to acquire Tower to remain competitive in chip manufacturing and had obtained approval from American authorities. However, after waiting for 18 months without approval from Chinese authorities, Intel was forced to announce the cancellation of the acquisition. Intel, which generates 27% of its global revenues from China, avoiding jeopardizing this relationship, demonstrates how complex the economic battle between the US and China has become.
  • Trump not only escalated the disputes into a trade war but also extended the scope of these disputes to include some other countries, including Japan. Through bilateral talks, the dispute with Japan was de-escalated, but with China, the long and tedious negotiations did not lead to a resolution.
  • The emerging crisis and instability in the international system is generating new openings and relations among different major powers. On the one hand we have been seeing new forms of challenges and confrontations among the superpowers. The trade war between China and the U.S. is only one of these new types of confrontations, which is a part of a rising trend in geo-economic dynamics in international relations.

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