The economic dimensions of US-China competition

The competition between the US and China continues at full speed across many different fields. However, it is also evident that in this competition, the US is struggling while China holds the advantage. 

To discuss the subject more comprehensively, let us share a few facts. 

According to usdebtclock.org, a site where detailed information regarding the US economic situation is shared in real-time and which is frequently used by social scientists and economists, the US debt has exceeded 34 trillion dollars, while its gross domestic product (GDP) is 27.2 trillion dollars. According to the same site, China's debt is 14.2 trillion dollars, and its GDP is 17.5 trillion dollars. As announced by Chinese officials, the Chinese economy, which grew by 5.2 percent in 2023, is expected to contribute more than 30 percent to global economic growth. 

Struggling in economic competition, the US continues its anti-China moves by trying to encircle China from its immediate vicinity. In recent years, it has led a pact for this purpose. The pact between Australia, the United Kingdom, and the US, briefly referred to as AUKUS, has emerged almost as a branch of NATO in the region. In this respect, it has also drawn attention as a complement and continuation of the US-led QUAD, or the quadrilateral alliance (US, Japan, Australia, India).  

The US's hostile attitude toward China is well-known. In both national strategy documents and NATO documents, which are the instruments of aggression and occupation for US imperialism, China and Russia are defined as adversary states, rival states, and states that challenge US hegemony. Deeply concerned about China's economic growth, the US, anticipating that China will surpass the US to become the world's largest economy within the next 10–15 years, is trying to mobilize all its allies against China. 

With a population exceeding 1.4 billion, China has surpassed the US in calculations based on purchasing power parity in recent years. The US, unable to prevent this, has also been unable to do anything against the expansion of the Shanghai Cooperation Organization and BRICS, led by China and Russia, nor can it prevent its allies from joining the Belt and Road Initiative launched by China in 2013. 

Moreover, for years, China has been one of the two largest foreign trade partners of the European Union (EU), alongside the US. Sometimes China comes first, sometimes the US. The relations of Germany, the leader and locomotive of the EU, with China are noteworthy. Let us recall that despite all the efforts of the previous US president, Donald Trump, US companies did not give up on investing in China or trading with China. China's commercial relations and diplomatic influence are increasing in a vast geography extending from Africa to Latin America, from Central Asia to the Middle East. Its trade volume with Africa is constantly increasing. China has good relations with both Israel and Palestine. China facilitated the normalization of relations between Iran and Saudi Arabia. Its investments are increasing in Turkey as well as in Greece. 

China is taking significant steps in science and technology. It draws attention with the number of its patents, the number of universities it has placed in the world's top 500, and the number of its companies in the top 10, top 100, and top 500. It plans to send approximately 4,000 satellites into space by 2030 to be used in various fields. It ranks second after the US in artificial intelligence research. One out of every two 5G phones in the world is sold in China. China has also surpassed Germany in the machinery industry to become the export leader. 

US COMPANIES HAVE NOT GIVEN UP ON CHINA 

Despite both the anti-China policies pursued by the US and the COVID-19 pandemic, the private sector in the US and its allies attaches great importance to commercial relations with China. US, European, and Japanese companies are taking a stance in favor of growing their businesses in China. China is also ambitious in regional trade. Trade between the Association of Southeast Asian Nations (ASEAN) and China is constantly increasing. China conducts trade with many countries using national currencies and encourages this. It is working to have its official currency, the renminbi (RMB), used more as a reserve currency on an international scale. 

In terms of cargo volume, 8 of the world's top 10 ports are in China; in terms of container volume, 7 of the world's top 10 ports are in China. 96 percent of the world's dry cargo containers and all of its refrigerated containers are produced in China. China has been in the top spot in container production for over a quarter of a century. Freight train services between China and Europe, which began in 2011, have also developed rapidly. Today, freight trains travel from China to more than 160 cities in 22 countries in Europe. The US giant aircraft manufacturer Boeing predicts that Chinese airline companies will need 8,700 new aircraft by 2040. According to this calculation, the value of China's aircraft demand will be 1 trillion 470 billion dollars. 

As these figures show, China's economic breakthroughs are naturally reflected in its political, diplomatic, and military breakthroughs. In response, the US is trying to encircle China from its immediate vicinity, highlight its allies in this region more, and pressure it over the Taiwan issue. 

However, the US, whose hegemony is eroding, is not finding what it hoped for in any of these moves.