With the recent conclusion of the US presidential race, China-US relations stand at a pivotal juncture. In the past few years, the US has adopted a “strategic competition” approach to China, attempting to exert pressure across multiple domains, including economics, technology, and security. This approach, however, has largely failed to yield the intended results for the United States. Instead, it has intensified frictions between the two nations and disrupted the global supply chain, highlighting the need for a policy reevaluation. The new US administration now has an opportunity to recalibrate its China policy to foster a more stable and mutually beneficial relationship. By addressing the shortcomings of the current approach, there is a possibility of creating a more sustainable partnership between two of the world’s most influential economies.

Globalization has led to deep interdependence between the American and Chinese economies, making complete “decoupling” not only unrealistic but potentially harmful to both sides. American businesses and consumers are experiencing the consequences of high tariffs and supply chain challenges, exacerbating inflation and putting pressure on the economy. The trade war, launched under the previous administration, aimed to bring manufacturing back to the US. However, it instead increased costs for American companies without achieving significant reshoring of production.

China remains a vital manufacturing hub and a key market for US capital and technology. Severing economic ties would likely backfire, damaging American companies’ access to a vast market and driving up costs for consumers. Instead of disengaging, the US would benefit from rethinking its tariff strategy and working with China to establish trade agreements based on mutual........

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