Despite all the geopolitical conflict, America's economic dependence on China remains unwavering. What makes China so important to the United States, despite its seemingly anti-American decisions?
Xi Jinping and Donald Trump
Xi Jinping's recent visit to the US has captured global media attention, with President Donald Trump personally welcoming him at the airport and rolling out the red carpet for the Chinese president. Despite significant disagreements between the two countries on a number of key issues, including trade, technology, and Taiwan, this high-profile meeting clearly demonstrates that the US cannot sever its ties with China even if it so desires. Simply put, this entire matter hinges on a diplomatic policy of both hostility and compulsion.
China challenges US policies
China has never directly fought a war with the US on the global political stage, but on numerous occasions it has indirectly harmed US global interests. For example, during the Ukraine war, when the US imposed severe economic sanctions on Russia, China secretly increased its trade with Russia to record levels, weakening US sanctions and allowing Russia to continue its war with Ukraine.
Similarly, in the Middle East, China has forged strong strategic and trade agreements with Iran, America's greatest enemy, marking a significant step against American policies. Furthermore, China, along with other countries, is continuously striving to dismantle the US dollar's dominance in the international market, thereby eroding America's power to impose sanctions.
Trade compulsion and dependence on US markets
Despite these backlashes, the US is forced to sit at the table with China, largely due to trade and economic factors. Today, American markets are completely flooded with Chinese goods; from iPhones and electronic gadgets used in American homes to the raw materials for medical drugs, a significant amount of them are produced in Chinese factories.
In 2025-2026, total bilateral trade between the US and China is projected to surpass approximately $415 billion. Today, the scope of US-China trade is so vast that even a trade war is imminent, the US cannot sever its ties with China. Because if the US were to completely sever its trade ties with China, it would lead to massive shortages of goods in the American markets and skyrocketing inflation, which the US government could never afford.
Tech supply chain dominance
In addition to economic dependence, China also controls the supply chain of advanced technology. China holds the largest reserves of rare earth elements used in computer chips, missiles, and electric vehicles, and also controls many of the world's most important mines. China has repeatedly threatened to block the supply of these minerals. If China does so, the American tech industry will be instantly devastated, something the US would never want.
Furthermore, in today's world, it has become a global imperative for these two superpowers to come together to set rules for artificial intelligence, cybersecurity, and to prevent a global recession. This is why, despite all the bitterness and conflict, President Chan is being welcomed with a red carpet in the United States.
