Dragon vs Eagle: China's 35-year ascent to challenge US leadership

From being a major exporter to only a handful of countries in 1990, today it is the largest source of imports to 125 countries. In contrast, the US, which was once the top exporter to 175 countries, is now reduced to just 35 countries. Looking at the figures of 2024, China's total exports have reached $ 3.58 trillion, while the US is stuck at $ 2.06 trillion.

U.S. Strategy and Growing Concerns

China's growing influence has made the US lose its strategic slumber. The US is adopting strategies such as tariff war, chip technology ban and supply chain diversification to suppress China, but China's grip still remains strong. The challenge for the US is that it cannot ignore China, because economically the two countries are deeply interconnected.

America's problems with China's competition

China's biggest strength is its cost competitiveness. For example, an iPhone made in China for about $1,000 could cost as much as Dollar 100,000 if it was made in the US. This is the reason why companies from all over the world have made China their production hub. China is now an integral part of the global supply chain. The trade war between China and the US is not just a fight between two countries, but it is affecting the global economic balance. In the coming time, this confrontation may deepen even more, causing the world to face recession and instability.