AmiSight 2/18: Trade Ties Fray as China Pushes for Independence From the West
- Ami Kassar
- 6 hours ago
- 1 min read
The honeymoon appears to be over for the American and Chinese economies. And the divorce looks to be messy.
The Wall Street Journal reports that since early 2024, Beijing in a concerted effort has allocated nearly $1 trillion to build self-sufficiency in agriculture, energy and the semiconductors that power its artificial-intelligence drive. The shift fulfills a longstanding Chinese ambition to no longer be a junior partner to the West.
Although neither side wants to end all trade between the two economies, fierce rivalry with the U.S. is now the primary driver of China’s economic strategy.
As the world’s largest consumer, America will always represent an immense source of demand for goods from China, the world’s dominant producer. But even a small reduction in the amount of stuff the U.S. buys from China stands to have a major impact on both economies.
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