Tair Omarov, a sinologist and oriental studies expert born in Kazakhstan, lived in China for 14 years, helping large businesses establish business contacts. He is fluent in Chinese, English, and Russian. Tair has traveled extensively throughout Southeast Asia and the Middle East. He currently lives in Dubai, where he is developing his own business. He also runs a blog where he writes about the realities of China and other topics.
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The confrontation between the United States and China in the modern world has reached its highest point of tension, as far as possible without an open military clash between the two powers. This confrontation is particularly evident in the following areas: economy, technology, politics and diplomacy, military-strategic sphere, culture, and ideology. These areas encompass various aspects of the global rivalry between the two largest world powers, defining its scale and complexity. Let us take a closer look at these areas.
U.S. President Joe Biden and Chinese President Xi Jinping. Photo
Economy
Economic rivalry between the United States and China remains one of the central themes of their confrontation. The trade war, which escalated in 2018 during President Donald Trump’s administration, became a vivid example of the deterioration of economic relations. The United States imposed high tariffs on numerous Chinese goods, aiming to reduce the trade deficit (at that time, the turnover between the two countries amounted to $710.4 billion, including $187.5 billion in exports from the United States and $522.9 billion in imports to the United States, resulting in a trade deficit of $335.4 billion) and reduce dependence on Chinese imports. In response, China introduced counter-tariffs on American goods, which led to a slowdown in trade between the countries and affected global markets.
This trade war ultimately hurt both economies. American farmers lost a major market for their exports, while Chinese companies faced increased costs for raw materials and components. Nevertheless, China continues to strengthen its economic position, actively developing its domestic market and expanding investments abroad, including within the framework of the “Belt and Road Initiative”.
Another important element of economic rivalry is currency policy. The United States accuses China of manipulating the yuan’s exchange rate to maintain the competitiveness of its exports. Such accusations undermine confidence in international trade and financial stability. In addition, China seeks to make the yuan a more influential global currency, which causes discontent in the U.S. and its allies, as it threatens the dominance of the dollar.
The economic sphere also includes control over strategic resources. China actively invests in the extraction of rare earth metals (accounting for 38% of the world’s reserves), which are necessary for the production of high-tech devices, including smartphones and military equipment. This gives China a significant advantage in the global market, and the United States is concerned about growing dependence on supplies of these materials.
Thus, the economic confrontation between the United States and China is not only a matter of tariffs and trade but also a struggle for control over resources and influence on the global financial system.
Technology
The technological confrontation between the United States and China is one of the most important and tense areas of their rivalry. China actively develops its technological capabilities, striving to become a world leader in fields such as artificial intelligence, 5G, quantum computing, and biotechnology. This causes concern in the United States, which sees these successes as a threat to its technological dominance.
The company Huawei has become a symbol of this confrontation. The U.S. accused Huawei of espionage and cooperation with the Chinese government, which led to sanctions against the company and a ban on its equipment in the United States and other allied countries. These actions are aimed at limiting China’s influence in the field of communications technology, especially 5G, where Huawei is one of the world leaders. The U.S. also actively persuades its allies to abandon Huawei equipment, fearing it could be used for espionage.
Sanctions against Chinese technology companies complicate their access to advanced technologies, such as microchips and software. This forced China to accelerate the development of its technological base, striving to reduce dependence on Western technologies. In response to U.S. restrictions, China began to actively invest in the development of its semiconductors and the creation of a national technology ecosystem, which emphasizes its desire for technological independence.
In addition, the United States and China compete for leadership in artificial intelligence (AI). Both countries are investing heavily in research and development in this area, as AI is a key technology for future economic growth and military capabilities. Chinese companies such as Baidu and Tencent have achieved significant success in AI development, and the Chinese government has set an ambitious goal to become the world leader in this field by 2030.
Technological rivalry also includes a struggle for influence over standards and norms of international technological cooperation. China seeks to establish its standards in areas such as 5G and the Internet of Things, which would allow it to dominate the future technological infrastructure. The United States, in turn, seeks to limit the spread of Chinese standards and promote its approaches to maintain its influence.
Thus, the technological confrontation between the United States and China is a key aspect of their global rivalry, affecting issues of national security, economic growth, and the future of global technological development.
Politics and Diplomacy
The political and diplomatic rivalry between the United States and China covers many regions and areas of international relations. China is actively strengthening its influence in international organizations and initiating new alliances, striving to present an alternative to Western leadership. The United States, in turn, continues to use its diplomatic ties and strategic partnerships to contain China’s growing influence.
One of the key aspects of political confrontation was China’s position regarding the war between Russia and Ukraine. China has taken a relatively neutral position, avoiding direct criticism of Russia and calling for a diplomatic resolution of the conflict. Such a position allows China to maintain good relations with Russia, an important strategic partner, while also avoiding open confrontation with Western countries, including the U.S. and the European Union.
China has repeatedly called for a ceasefire and a return to negotiations, but has abstained from voting in the United Nations on resolutions condemning Russia’s actions. This approach emphasizes China’s desire to balance cooperation with Russia and its economic interests in the West. The United States, in turn, sees China’s position as an attempt to undermine the unity of the international community regarding the conflict and to use the situation for its benefit.
Diplomatic rivalry also manifests itself in the increased Chinese influence in the Middle East, Africa, and Latin America, where China actively invests in infrastructure projects within the framework of the “Belt and Road Initiative.” This initiative allows China to establish close economic and political ties with developing countries, providing them with loans and cooperation. The U.S., in contrast, warns these countries about the risks of “debt diplomacy” and offers alternative forms of cooperation, striving to limit China’s influence.
Thus, the political and diplomatic confrontation between the United States and China includes a struggle for influence in various regions of the world, the establishment of new alliances, and the use of international organizations to promote their interests. China’s position regarding the war between Russia and Ukraine emphasizes its desire to balance between strategic and economic interests without entering into direct confrontation with the West.
Military-Strategic Sphere
The military-strategic confrontation between the United States and China is largely concentrated in the South China Sea region, which is one of the most tense points of global security. The South China Sea has strategic importance as it hosts major maritime trade routes, and the region is rich in natural resources, including oil and gas. China claims territorial rights to a significant part of this area, leading to conflicts with other countries in the region.
South China Sea and strained relations with neighboring countries:
Philippines: The Philippines is one of the countries most actively opposing China’s territorial claims. In 2016, the international arbitration in The Hague ruled in favor of the Philippines, recognizing China’s claims on parts of the South China Sea as illegal. However, China refused to recognize this ruling and continues to increase its military presence in disputed waters. The U.S., in turn, supports the Philippines, including through joint military exercises and providing military supplies to strengthen their defense.
Vietnam: Vietnam also actively opposes China’s territorial claims in the South China Sea. Both countries have repeatedly clashed in territorial disputes, including military skirmishes. China constructs artificial islands and places military facilities there, which concerns Vietnam. The U.S. supports Vietnam in its efforts to protect its sovereign rights by increasing its military presence in the region and strengthening relations with the Vietnamese government.
Malaysia: Malaysia also has territorial claims in the South China Sea that overlap with those of China. Although Malaysia prefers negotiations and avoids direct confrontation, tensions periodically escalate, especially when Chinese ships enter disputed waters for reconnaissance or other operations. The U.S. supports Malaysia in its efforts to protect its rights in disputed territories by conducting military exercises and strengthening bilateral relations.
Taiwan: Taiwan is another significant point of military-strategic confrontation between the U.S. and China. China considers Taiwan part of its territory and does not rule out the use of military force to regain control over the island. The U.S., in turn, supports Taiwan, providing it with arms and conducting drills in the region. Washington adheres to the “One China” policy but effectively provides substantial support to Taiwan, which irritates Beijing and increases regional tensions.
Thus, the military-strategic confrontation in the South China Sea includes complex relations between China and its neighbors, with the U.S. actively supporting these countries to contain Chinese territorial ambitions.
Culture and Ideology
While the United States traditionally promotes ideals of democracy, freedom of speech, and human rights, China positions its development model as socialism with Chinese characteristics, which they claim better suits China and serves as an example for developing countries. In practice, however, China’s governance system is increasingly converging with a capitalist model, while retaining elements of a state economy and one-party system.
Modern China represents a mixed economy, combining elements of socialism and capitalism. The Chinese economy is based on private entrepreneurship, market mechanisms, and integration into the global economy, making it largely similar to capitalist systems. However, the Chinese government retains strong control over key sectors of the economy and actively intervenes in market processes, distinguishing it from Western democracies.
The ideological confrontation between the U.S. and China is not actually a clash of democracy versus socialism, as was the case during the Cold War between the U.S. and the USSR. Instead, it is a confrontation between two major capitalist powers, each striving to establish its values and interests on the international stage. The Chinese model, while incorporating elements of socialism, is closer to a state-capitalist system, where the government retains control while supporting the development of private business and market economy.
The U.S. continues to criticize China for human rights violations, suppression of freedom of speech, and lack of political freedoms, especially in regions such as Xinjiang and Hong Kong. China, in turn, rejects this criticism, arguing that Western standards of democracy and human rights are not universal and that every state has the right to its own development path. This position contributes to the growth of ideological confrontation, as China seeks to promote its model as an alternative to Western democracy.
Thus, cultural and ideological rivalry between the United States and China is not purely an ideological conflict between socialism and capitalism but rather a struggle for global leadership between two capitalist countries with different approaches to governance and society.
Confrontation within International Blocs
Another important aspect of the confrontation between the U.S. and China is their participation in various international blocs and alliances, which enhances their influence on the world stage and defines the context of global rivalry.
The U.S. and its alliances
The United States relies on its traditional alliances, such as NATO, as well as new strategic blocs, such as AUKUS and QUAD. NATO remains the largest military alliance that plays a key role in maintaining global security and stability. While NATO’s focus has historically been on Europe, its attention is also drawn to China’s actions in the Indo-Pacific region, and member states increasingly speak out about the need to counter the growing influence of China.
AUKUS: AUKUS is a military alliance that includes Australia, the United Kingdom, and the United States, established to contain Chinese influence in the Indo-Pacific region. This alliance provides for the transfer of technology to Australia to build nuclear submarines, strengthening its defense capability and making the alliance an important element in containing China in the region.
QUAD: QUAD (Quadrilateral Security Dialogue) includes the United States, Japan, Australia, and India. This informal partnership aims to ensure stability and security in the Indo-Pacific region, and although QUAD is not a military alliance, its activities are aimed at strengthening cooperation and countering the growing influence of China.
China and its alliances
China also seeks to strengthen its position on the world stage through participation in international blocs and the creation of new alliances, such as the Shanghai Cooperation Organization (SCO) and BRICS.
SCO: The Shanghai Cooperation Organization brings together China, Russia, several Central Asian countries, as well as India and Pakistan. The SCO was created to ensure security and stability in the region and to strengthen economic cooperation. China actively uses the SCO to advance its interests and create a counterbalance to Western alliances like NATO.
BRICS: BRICS brings together five developing economies — Brazil, Russia, India, China, and South Africa. In 2024, the UAE, Iran, Egypt, and Ethiopia joined them, and Turkey, Azerbaijan, and Malaysia have applied for membership. This bloc aims to strengthen economic cooperation and create an alternative to Western economic institutions, such as the International Monetary Fund and the World Bank. China, as one of the largest economies in BRICS, actively promotes the idea of reforming the international financial system and reducing dependence on the dollar.
As a result, the confrontation between the U.S. and China can be characterized as complex and multi-layered, affecting all spheres — from economics to military strategy and ideology. The methods employed range from direct pressure and sanctions to the use of international alliances and diplomatic tools
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