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.
  • The Biden administration is struggling to formulate a comprehensive and effective China policy. While the Trump era saw constant pressure on China, attempting to limit its sphere of influence, the Biden administration embarked on a path of both competition and cooperation. Despite a general consensus across both parties about the need for the United States to contend with China, it is evident that crafting a concrete and effective China policy remains challenging. The planned visit of Secretary of State Blinken to China in February, expected to ease the escalating tensions and establish a "constructive" framework, was postponed due to the strain caused by the "spy balloon" incident, further highlighting the fragility and lack of trust in the relationship. However, there is no indication of any tangible outcome achieved during Blinken's visit.
  • The United States has shown a close and dangerous interest in Taiwan in recent years in order to break the power of China, with which it is in global competition in almost every field, and to confine China to the Indo-Pacific region. If the two great powers with nuclear weapons try to solve this problem with war, of course, it will lead the whole world to disaster. However, according to the Realist school in the International Relations literature, it is thought that these powers will not directly attempt war, based on the prediction that if a nuclear power attacks another nuclear power, both sides will be destroyed. Based on this thesis, we can say that the probability of a direct U.S.-China war is unlikely.

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