Da Wei
How to Move Past Strategic Competition
U.S. Secretary of the Treasury Scott Bessent and Chinese Vice Premier He Lifeng in Geneva, Switzerland, May 2025 Martial Trezzini / Reuters
DA WEI is Director of the Center for International Security and Strategy and a Professor in the Department of International Relations at Tsinghua University.
In the repeated cycles of confrontation and détente that define U.S.-Chinese relations, a paradox has emerged. Economic relations between the two countries are more fraught than ever: in early October, for the second time in just six months, the United States and China launched a trade war, imposing prohibitive export restrictions and threatening to raise tariffs to previously unthinkable levels.
Yet the U.S.-Chinese relationship also appears increasingly resilient. Although leaders in both Washington and Beijing have seemingly shrugged their shoulders at the rapid decoupling of the world’s two largest economies, the first bout of trade escalation in April and May gave way to a period of relative calm. Over the past ten months and even during the final two years of the Biden administration, U.S.-Chinese relations have been showing signs of rebalancing. Each time a crisis has arisen, such as when a Chinese unmanned high-altitude balloon flew into American airspace in 2023, U.S. and Chinese leaders have sought to quickly stabilize ties, suggesting that the world’s two largest economies still share a structural need for a broadly steady relationship.
These contradictory trends signal that the U.S.-Chinese relationship might be at an inflection point. Neither Washington nor Beijing harbors any illusions that the two countries can return to the pre-2017 era, in which interdependence and engagement, rather than decoupling and strategic competition, were its defining features. But short-term economic spats and tactical maneuvering for potential deals should not obscure the possibility that the United States and China can move beyond an era of adversarial competition toward a more normal relationship—one in which they can coexist peacefully in a state of cool but not hostile interactions. The meeting between U.S. President Donald Trump and Chinese leader Xi Jinping this week in South Korea presents a narrow but important opportunity for the United States and China to enter a new phase of bilateral relations.
AMERICA VERSUS THE WORLD
The possibility of an inflection point stems in part from changes in U.S. foreign policy. From Beijing’s perspective, Trump’s first term marked the onset of a period of strategic competition in which the United States, viewing China as its most serious adversary and competitor, sought primarily to contain or slow China’s economic and technological rise. It was, in other words, the United States versus China. Under President Joe Biden, Washington maintained the same goals but sought to do so in concert with its allies—the West versus China. For strategists and policymakers in China, both Trump and Biden believed that American and Chinese interests were fundamentally at odds, and therefore the only option was unyielding competition that left no room for compromise
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