America’s economic war against China: A strategy that will only backfire.

By Staff Writer

Published: February 11,2025

The economic relationship between the United States and China has long been one of the most important and complicated in the world. However, recent years have witnessed a growing economic war between the two countries. The U.S. has sought to counter China’s rise through tariffs, sanctions, and other restrictive measures, hoping to curb its economic and technological dominance. While the U.S. government argues that these measures are necessary to protect national security and maintain a level playing field, the reality is that America’s economic war against China is more likely to backfire, harming the global economy and the U.S. itself.

One of the fundamental flaws in America’s approach is the underestimation of the deep economic interdependence between the two nations. As the world’s largest economies, the U.S. and China are tightly connected through trade, investment, and supply chains. For decades, China has been a significant importer of American goods, a source of affordable manufacturing, and a holder of U.S. debt. On the other hand, China has relied on American markets for its own export-driven growth.

The reality is that decoupling the two economies is virtually impossible without severe consequences. American companies that rely on Chinese manufacturing and raw materials will face increased production costs and supply chain disruptions. Major industries, such as technology, agriculture, and consumer goods, are likely to be hit hardest. For instance, Apple, which depends heavily on China for its manufacturing, could see a significant rise in production costs, which would ultimately be passed on to consumers in the form of higher prices.

The most prominent tool in America’s economic war has been tariffs, which the Trump administration first introduced in 2018 as part of a broader effort to reduce the trade deficit.  These tariffs  have ended up harming American businesses and consumers. According to a report from the National Bureau of Economic Research, the tariffs imposed on Chinese goods ended up costing U.S. consumers an estimated $51 billion annually, with no clear evidence that China was significantly altering its economic policies.

In addition, U.S. manufacturers have found it increasingly difficult to find alternative suppliers outside of China. The cost of diversifying supply chains is astronomical, and many companies have chosen to absorb the costs of tariffs rather than move their operations elsewhere. This has left American businesses in a precarious position, as they are caught between the demands of the U.S. government and the economic reality of a globally interconnected market.

China has not been passive in the face of America’s economic aggression. In response to tariffs and sanctions, China has taken a series of countermeasures aimed at protecting its own economic interests. For example,   tariffs have been imposed on U.S. agricultural products, hurting American farmers who rely on China as a key export market. Furthermore, China has accelerated its push to become less reliant on American technology by investing heavily in domestic innovation, such as the development of its own semiconductor industry.

These moves are part of a broader strategy to reduce China’s dependence on the U.S. and mitigate the impact of economic sanctions. By bolstering its own technological capabilities and diversifying trade relationships with other countries, China is positioning itself as less vulnerable to American pressure. In fact, the U.S. has unintentionally accelerated China’s technological rise by forcing the country to innovate in areas that were previously dominated by Western firms.

China’s increasing economic clout has allowed it to forge new alliances, especially through initiatives like the Belt and Road Initiative (BRI). This has given China significant leverage in parts of Africa, Latin America, and Asia, where it is positioning itself as an alternative to American-led economic influence. As the U.S. and China continue to clash, more countries may choose to side with Beijing, seeing it as a more reliable economic partner than a U.S. that is increasingly turning inward.

The economic war between the U.S. and China, far from achieving its intended objectives, is more likely to harm American interests in the long run. It has led to higher costs for American consumers and businesses, while inadvertently accelerating China’s technological development. Additionally, the broader geopolitical consequences of this conflict risk fragmenting global trade networks and undermining American influence. Rather than seeking to decouple from China, the U.S. would be better served by engaging in dialogue and cooperation to ensure a balanced, sustainable economic relationship that benefits both nations and the world. Without a shift in strategy, the current economic war is poised to backfire on America, leaving it less competitive and more isolated on the global stage.