Illustration of American Eagle and Chinese Panda staring one another down

The U.S. vs. China

Why are tensions rising between these two powerful nations, and what does it mean for the rest of the world?

For decades, the United States and China have toggled between conflict and tentative cooperation. In the Cold War era (1947-91), the U.S. worked hard to undermine China’s Communist government, and China pushed back against Western democracies, even sending troops to fight Americans in the Korean War (1950-53). By the late twentieth century, however, China and the U.S., while hardly the best of friends, became trading partners, fueling China’s rise as an economic superpower.

Today the U.S. and China are locked in an intense rivalry. American officials view China as an authoritarian state with rising military ambitions, an increasing influence in developing nations, and a desire to supplant the U.S. as the leading creator of advanced technologies. China sees itself as returning to its rightful place as a world power, from which it was toppled by Westerners two centuries ago.

The competition between these powerful nations could shift alliances and reshape the global economy, altering the post-Cold War international order that has centered around the U.S. as the lone superpower. Here are five areas in which China is posing a challenge to the U.S.

For decades, the United States and China have switched between conflict and tentative cooperation. In the Cold War era (1947-91), the U.S. worked to undermine China’s Communist government. China pushed back against Western democracies and even sent troops to fight Americans in the Korean War (1950-53). By the late twentieth century, however, China and the U.S., while hardly the best of friends, became trading partners. This partnership drove China’s rise as an economic superpower.

Today the U.S. and China are locked in an intense rivalry. American officials view China as an authoritarian state with rising military ambitions and a desire to supplant the U.S. as the leading creator of advanced technologies. They also see China as an increasing influence in developing nations. China sees itself as returning to its rightful place as a world power.

The competition between these powerful nations could shift alliances and reshape the global economy. And it could alter the post-Cold War international order that has centered around the U.S. as the lone superpower. Here are five areas in which China is posing a challenge to the U.S.

Jim McMahon

Feature China/Future Publishing via Getty Images

A factory worker in Suining, China, assembles earbuds for export.

1. The Battle Over Manufacturing

China is already a manufacturing superpower. It makes 35 percent of the world’s goods, according to a United Nations report—more than the next nine largest manufacturing nations combined, including the U.S., which currently makes just 12 percent.

Since the 1980s, China has been the top trading partner of the U.S., supplying inexpensive products Americans depend on, from sneakers and clothes to toys and electronics. But more recently, China has upped the ante, overtaking the U.S. as the world’s top maker of high technology. More than 60 percent of the world’s electric vehicles are made in China, as are most EV batteries and solar power equipment, not to mention computers and smartphones.

China is already a manufacturing superpower. It makes 35 percent of the world’s goods. According to a United Nations report, that is more than the next nine largest manufacturing nations combined, including the U.S., which currently makes just 12 percent.

Since the 1980s, China has been the top trading partner of the U.S. It supplies inexpensive products Americans depend on, from sneakers and clothes to toys and electronics. But more recently, China has overtaken the U.S. as the world’s top maker of high technology. It makes more than 60 percent of the world’s electric vehicles. It also makes most of the world’s EV batteries, solar power equipment, computers, and smartphones.

China now makes thirty-five percent of the world’s goods.

The U.S. has the edge in innovation and making things of higher quality. Its investment in research has dwarfed that of China, leading to greater advancements in artificial intelligence, robotics, aerospace, medical devices, and defense.

Still, some in the U.S. worry that the manufacturing imbalance could diminish U.S. power in the world. President Trump has moved to increase tariffs—taxes on goods coming into the U.S.—on Chinese imports because he believes it will create more demand for U.S.-made products and encourage American companies not to outsource production to Chinese factories. But critics argue it could drive up prices for U.S. consumers and reduce companies’ profits and innovation.

As for China, its economy has counted on masses of American customers for decades. Forced to turn elsewhere, China could pull current U.S. trading partners deeper into the Chinese orbit.

But that’s a scenario that remains hard to predict.

“You can’t model this,” says Steven Okun, chief executive of APAC Advisors, a geopolitical consulting firm. “Are countries going to have to choose between the U.S. and China?”

The U.S. has the edge in innovation and making things of higher quality. Its investment in research has dwarfed that of China, leading to greater U.S. advancements in artificial intelligence, robotics, aerospace, medical devices, and defense.

Still, some in the U.S. worry that the manufacturing imbalance could diminish U.S. power in the world. President Trump has moved to increase tariffs—taxes on goods coming into the U.S.—on Chinese imports because he believes it will create more demand for U.S.-made products. He wants to encourage American companies not to outsource production to Chinese factories. But critics argue it could drive up prices for U.S. consumers and reduce companies’ profits and innovation.

As for China, its economy has counted on masses of American customers for decades. Forced to turn elsewhere, China could turn to the U.S.’s trading partners. That could bring these countries under China’s influence. But that’s a scenario that remains hard to predict.

“You can’t model this,” says Steven Okun, chief executive of APAC Advisors, a geopolitical consulting firm. “Are countries going to have to choose between the U.S. and China?”

Sergei Guneyev/POOL/AFP via Getty Images

Xi Jinping and Vladimir Putin at a summit in Kazakhstan, 2024

2. China’s Alignment With Russia

The bond between China and Russia has grown increasingly stronger since Vladimir Putin rose to his first term as president in 2000. The countries see themselves as partners in challenging a global order dominated by the U.S.

This alignment has strained China’s relations with Western nations, particularly over Russia’s war in Ukraine, which has killed 14,000 civilians and injured 32,000 more since the Russian invasion in 2022. China continues to buy huge quantities of Russian oil, which allows Russia to sustain its war effort. While China denies supplying weapons, it has provided drone and jet engines and technology for cruise missiles, American officials say. China has also declined to support a United Nations resolution calling for Russia to withdraw from Ukraine.

In siding with Russia, China is protecting its own power. Chinese officials believe that if Putin loses the war, China could find itself in Russia’s position, facing an alliance of world powers trying to contain its rise, the way the North Atlantic Treaty Organization (NATO) has acted as a bulwark against Russia’s expansionist ambitions in Europe.

The bond between China and Russia has grown increasingly stronger since Vladimir Putin rose to his first term as president in 2000. The countries see themselves as partners in challenging the U.S. dominated global order.

This alignment has strained China’s relations with Western nations. Much of that tension is over Russia’s war in Ukraine, which has killed 14,000 civilians and injured 32,000 more since it began in 2022. China continues to buy huge quantities of Russian oil, which allows Russia to continue its war effort.  American officials say China has provided drone and jet engines and technology for cruise missiles to Russia. China denies that claim. It has also declined to support a United Nations resolution calling for Russia to withdraw from Ukraine.

By siding with Russia, China is protecting its own power. Chinese officials believe that if Putin loses the war, China could find itself in a position like Russia’s. They fear China might  face an alliance of world powers trying to contain its rise—much like the North Atlantic Treaty Organization (NATO) has contained Russia’s expansionist ambitions in Europe.

China is siding with Russia to protect its own power.

“Even if China becomes the world’s number one economic power, its international security environment may continue to worsen,” says Liu Jiangyong, an expert on China at Tsinghua University in Beijing.

In May, President Xi Jinping met with Putin in Moscow, where they signed an agreement further deepening the China-Russia partnership. Xi used the visit as a statement against what he sees as American bullying.

“The priority was to signal to the U.S. that China and Russia share an unbreakable bond,” says Yun Sun, director of the China program at the Stimson Center in Washington, D.C.

The China-Russia partnership helps Russia weather economic sanctions imposed by the U.S. and its allies to try to force an end to the war. And it lets China flex its geopolitical muscles.

“The alignment,” Sun adds, “is an effort to pursue a world order based on authoritarian ideology as an alternative to Western democracy.”

“Even if China becomes the world’s number one economic power, its international security environment may continue to worsen,” says Liu Jiangyong, an expert on China at Tsinghua University in Beijing.

In May, President Xi Jinping met with Putin in Moscow. They signed an agreement further deepening the China-Russia partnership. Xi used the visit as a statement against what he sees as American bullying.

“The priority was to signal to the U.S. that China and Russia share an unbreakable bond,” says Yun Sun, director of the China program at the Stimson Center in Washington, D.C.

The China-Russia partnership helps Russia weather economic sanctions imposed by the U.S. and its allies to try to force an end to the war.

“The alignment,” Sun adds, “is an effort to pursue a world order based on authoritarian ideology as an alternative to Western democracy.”

Perry Svensson/Alamy Stock Photo

A protester in Taipei, Taiwan, supporting independence from China

3. Tensions Over Taiwan

The island of Taiwan, lying 100 miles off the coast of Southeast China, has for decades been a strategic piece in the larger geopolitical struggle between the U.S. and China.

The conflict began in 1949, when the Chinese Nationalist government fled to the island to escape the Communist takeover of mainland China.Fearing a Communist attack on Taiwan, the U.S. pledged to defend the island, establishing a military presence in the region over the next few decades. The U.S. still remains committed to Taiwan’s defense.

Chinese officials view America’s support of democracy in Taiwan as a provocation. While the island has its own constitution and elected leaders, Xi doesn’t view it as a separate nation and hasn’t ruled out the use of force to bring it under China’s control. Most Taiwanese residents believe that reunification with authoritarian China would spell the end of their free and open society.

 “If we cannot hold on to these achievements,” says Su Chiao-hui, a Taiwanese lawmaker, “the lifelong struggles and striving of my contemporaries will be in vain.”

Democracy isn’t the only thing the U.S. wants to protect. Taiwan is a key trading partner and makes almost all of the world’s most advanced computer chips. But as tensions mount, some observers worry an attack on the island could be imminent.

Says Jia Qingguo, an international relations professor at Peking University, “The three sides have seen their interactions caught in a vicious spiral . . . the forming of a perfect storm.”

The island of Taiwan, is 100 miles off the coast of Southeast China. For decades it has been a strategic piece in the larger geopolitical struggle between the U.S. and China.

The conflict began in 1949, when the Chinese Nationalist government fled to the island to escape the Communist takeover of mainland China. The U.S. pledged to defend the island against a Communist attack. Over the next few decades, the U.S. established a military presence in the region. It still remains committed to Taiwan’s defense.

Chinese officials view America’s support of democracy in Taiwan as a provocation. While the island has its own constitution and elected leaders, Xi doesn’t view it as a separate nation. He hasn’t ruled out the use of force to bring it under China’s control. Most Taiwanese residents believe that reunification with authoritarian China would be the end of their free and open society.

“If we cannot hold on to these achievements,” says Su Chiao-hui, a Taiwanese lawmaker, “the lifelong struggles and striving of my contemporaries will be in vain.”

Democracy isn’t the only thing the U.S. wants to protect. Taiwan is a key trading partner. The country makes almost all of the world’s most advanced computer chips. But as tensions mount, some observers worry an attack on the island could be coming soon.

Jia Qingguo, an international relations professor at Peking University, says, “The three sides have seen their interactions caught in a vicious spiral . . . the forming of a perfect storm.”

Shutterstock.com

A sign posted by a Chinese company promotes a project in Namibia, Africa.

4. China’s Influence in Africa

The U.S. has for decades been Africa’s largest aid donor, funding efforts to combat disease, bolster education, and promote democracy and human rights. But when it comes to economic investment, the U.S. has been losing ground to China.

Over the past 20 years, China has displaced the U.S. as Africa’s most important trading partner. China has invested billions, fueling an infrastructure boom on the continent, funding new highways and ports, hospitals and presidential palaces, and railways that connect cities to rural areas. And unlike U.S. projects, China’s have usually come without expectations about human rights standards, working conditions, or environmental protection, which can slow the pace of development.

The U.S. has for decades been Africa’s largest aid donor. It funds efforts to combat disease, bolster education, and promote democracy and human rights. But when it comes to economic investment, the U.S. has been losing ground to China.

Over the past 20 years, China has displaced the U.S. as Africa’s most important trading partner. China has invested billions to fuel an infrastructure boom on the continent. It has funded new highways and ports, hospitals and presidential palaces, and railways that connect cities to rural areas. And unlike U.S. projects, China’s have usually come without expectations about human rights standards, working conditions, or environmental protections, all of which can slow the pace of development.

‘Trade, not aid, is now the pillar of our policy in Africa.’

“For Xi, the goal is to try to discredit the West and show that there is an alternative out there,” says Eric Olander, the chief editor of the China-Global South Project website.

The U.S. stepped up its efforts under President Joe Biden, with the Lobito Corridor, an American-funded 800-mile railway stretching from the Democratic Republic of the Congo to Angola’s Atlantic coast. The project is expected to draw business investment to Africa and secure U.S. access to the rare earth minerals used to make high-tech devices.

President Trump could continue the project, though he may expect more concessions from African nations in return for U.S. support.

“Trade, not aid, is now the pillar of our policy in Africa,” says Troy Fitrell, the State Department’s top Africa official.

“For Xi, the goal is to try to discredit the West and show that there is an alternative out there,” says Eric Olander, the chief editor of the China-Global South Project website.

The U.S. stepped up its efforts under President Joe Biden. It funded the Lobito Corridor, an 800-mile railway stretching from the Democratic Republic of the Congo to Angola’s Atlantic coast. The project is expected to draw business investment to Africa and secure U.S. access to the rare earth minerals used to make high-tech devices.

President Trump could continue the project. But he may expect more from African nations in return for U.S. support.

“Trade, not aid, is now the pillar of our policy in Africa,” says Troy Fitrell, the State Department’s top Africa official.

Tang Ke/VCG via Getty Images

A robot entertains students in Yantai, China, in March.

5. The Race for A.I. Supremacy

The balance of power between the U.S and China could come down to which nation controls the development of artificial intelligence. The technology will shape the way the countries fight wars, and as it transforms industries such as manufacturing, finance, and health care, it will create trillions of dollars in economic value.

“Who controls A.I. is the geopolitical question of our time,” says Jim Secreto, a former deputy chief of staff for the U.S. Commerce Department.

For now, the U.S. is dominant. The companies at the forefront of A.I. research are in the U.S., as are most of the world’s data centers, which are crucial for training and deploying A.I.

The balance of power between the U.S and China could come down to which could come down to which nation controls the development of artificial intelligence. The technology will shape the way the countries fight wars. It will also transform industries such as manufacturing, finance, and health care, creating trillions of dollars in economic value.

“Who controls A.I. is the geopolitical question of our time,” says Jim Secreto, a former deputy chief of staff for the U.S. Commerce Department.

For now, the U.S. is dominant. The companies at the forefront of A.I. research are in the U.S. Most of the world’s data centers, which are crucial for training and deploying A.I., are also in the U.S.

‘Who controls A.I. is the geopolitical question of our time.’

To maintain its edge, the U.S. government has largely blocked companies from supplying China with the advanced computing chips needed to build A.I. But China may be catching up. The Chinese start-up DeepSeek recently launched an A.I. reasoning model that it says was trained with less advanced chips and was cheaper to develop than its Western rivals.

President Trump has continued to restrict exports of advanced chips to stifle China’s ability to make them. The strategy is part of what some, like Liu Pengyu of the Chinese Embassy in Washington, see as a larger U.S. effort to maintain global supremacy in the face of China’s rise.

Says Liu: “The U.S. probably hopes that China and the rest of the developing world will forever stay at the lower end of the industrial chain.”

To maintain its edge, the U.S. government has largely blocked companies from supplying China with the advanced computing chips needed to build A.I. But China may be catching up. The Chinese start-up DeepSeek recently launched an A.I. reasoning model that it says was trained with less advanced chips. The model was cheaper to develop than its Western rivals.

President Trump has continued to restrict exports of advanced chips to stifle China’s ability to make them. The strategy is part of what some, like Liu Pengyu of the Chinese Embassy in Washington, see as a larger U.S. effort to maintain global supremacy in the face of China’s rise.

Says Liu: “The U.S. probably hopes that China and the rest of the developing world will forever stay at the lower end of the industrial chain.”

China and the U.S.
A look at the history and conflicts between the two countries

With reporting by Chris Buckley, Amy Chang Chien, Lynsey Chutel, Tripp Mickle, Steven Lee Myers, Elian Peltier, David Pierson, and Ana Swanson of The Times.

With reporting by Chris Buckley, Amy Chang Chien, Lynsey Chutel, Tripp Mickle, Steven Lee Myers, Elian Peltier, David Pierson, and Ana Swanson of The Times.

China & the U.S.

GDP

$31 trillion (China)  |  $25 trillion (U.S.)

Size of Workforce

773 million (China)  |  172.4 million (U.S.)

Active Military Personnel

2 million (China)  |  1.3 million (U.S.)

Source: World FactBook (CIA)

Source: World FactBook (CIA)

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