US–China Tensions and the Future of Global Trade
Relations between the United States and China have become increasingly tense, particularly over trade, technology, and security. This rivalry is reshaping the global economy and challenging the idea of a fully globalised world.
Politically, both states see economic strength as central to national power. The US has introduced restrictions on Chinese access to advanced technology, while China has invested heavily in becoming more self-sufficient. These policies reflect wider concerns about influence, security, and global leadership.
For businesses, this tension creates uncertainty. Companies that once relied on Chinese manufacturing are now considering alternatives in Southeast Asia or elsewhere. While this reduces political risk, it increases costs and complexity.
Trade restrictions also affect other countries. Many states are forced to navigate between the US and China, balancing economic opportunities against political pressure. This shows how great-power competition shapes global choices.
For A-Level students, US–China relations provide a clear example of realism in international politics. States act to protect their interests, even if this disrupts global cooperation. At the same time, it raises questions about whether economic interdependence still promotes peace.
This evolving relationship shows that global trade is no longer just about efficiency. It is about strategy, power, and political values. Understanding this helps explain why international politics increasingly shapes economic outcomes.