The U.S. And China Economic Divide Remains Wide

After years of coldness in USA-China relations, there has been a silver lining. Last summer, US Treasury Secretary Janet L. Yellen’s visit to Beijing resulted in formal economic working groups to continue the conversation. Months later, the relationship between the two economies improved and even sparked a culinary craze in China when Ms. Yellen consumed a dish made with psychedelic “magic” mushrooms at a Yunnan-style restaurant in Beijing. However, economic conflicts continue to exist. 

“We don’t want to decouple our economies,” Ms. Yellen said during a stop in Alaska on her way to China. “We want to continue, and we think we both benefit from trade and investment, but it needs to be on a level playing field.” However, she added that the administration was ready to take any necessary actions against China to ensure the survival of its clean energy sector. 

Let’s look at these issues one by one:

A Flood Of Clean Energy Exports

The USA accused China of disrupting the global market by dumping its heavily subsidized green technology products such as electric vehicles, wind turbines, and lithium-ion batteries. in the market, as it did with its heavily discounted aluminum and steel products, ultimately resulting in a backlash against American products. Ms Yellen ensured that the American government would take action against these products to protect measures taken by Biden’s admiration for growing the clean energy markets.


The USA and Britain continue to impose sanctions on China. Britain imposed sanctions on China for stealing voting rolls for 40 million British citizens, and the USA imposed sanctions for installing malware on their electric grid, defense system, and other critical infrastructure. Also, China’s unparalleled support of Russia during the Russia-Ukraine war moved China to its bad graces. 

Technology Restrictions

The United States has imposed extensive restrictions on selling advanced computing chips, chip-making equipment, and related products to China. The USA claims that China uses these goods to develop advanced weapons and surveillance systems that raise security threats for the USA.

What Next?

It remains to be seen what actions the USA will take to bridge this widening gap between the USA and China and to resolve these ongoing economic conflicts. For more updates, follow us on LinkedIn, Instagram, and other social media platforms. 

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