US-China Economic Relations 2024-2025

Shall we talk about US-China Economic Relations 2024-2025?

Q: That sounds like a significant topic! I’ve noticed that US-China relations have been quite complex lately, especially with trade and technology issues. What specific aspects of their economic relations are you interested in discussing?

A: We can discuss the current status. The trade war continues with tariffs at 30% on Chinese imports, down from 145%. China imposed 10% tariffs on American products. Recent talks in Stockholm concluded without an immediate breakthrough. The U.S. trade deficit with China increased by 16 billion U.S. dollars in 2024. Technology competition is intensifying, especially in semiconductors and AI.

Q: That's a lot to unpack! The ongoing trade tensions and competition in technology, especially in semiconductors and AI, are really reshaping global markets. How do you think these developments will impact consumers and businesses in both countries?

A: In both countries, consumers will face increased pressure due to the tariffs. The key tension is that the first deepseek AI model caused massive panic on Wall Street; Nvidia fell by 17% and Microsoft by 3.5%. A total of $589 billion in market value was wiped out in a single day. Semiconductor export controls continue to be a major friction point, and the US CHIPS Act aims to reduce dependence on Chinese technology.

Q: Those market fluctuations are definitely alarming! The impact on tech stocks and the broader economy highlights how interconnected these issues are. Do you think the U.S. CHIPS Act will effectively reduce dependence on Chinese technology, or could it lead to further tensions?

A:  The U.S. CHIPS Act aims to bolster domestic semiconductor production and reduce reliance on Chinese technology, which could strengthen supply chain resilience and economic security. However, while it may mitigate some risks, the Act could also escalate tensions with China as it aligns with broader decoupling efforts and may provoke retaliatory measures, further complicating global trade dynamics and tech industry instability. The long-term effectiveness will depend on execution and international cooperation.

Q: : You’ve made some great points! The balancing act between strengthening domestic production and managing international relations is certainly delicate.

A:  The Trump administration is considering maintaining Chinese tariffs at 30% while increasing duties on other countries. This could actually help Chinese exporters in relation to their competitors. Trade talks are ongoing, but no immediate resolution is expected.

Q:  It’s interesting how tariffs can shift the competitive landscape! Keeping those tariffs in place could lead to unintended consequences for U.S. businesses while benefiting Chinese exporters.

A:  The primary concern of the U.S. is trade in technology leadership. It fears losing its dominance in semiconductors, AI, and advanced technologies. The dip in AI, causing a $589 billion market-wide drop, demonstrates this vulnerability. Export controls on semiconductors show how dependent the U.S. is, leading to a desperation to maintain its technological edge.

Q: You've raised a crucial point about the U.S. focus on maintaining its technology leadership, especially in semiconductors and AI.

A: Moreover, economic displacement is another concern. The trade deficit of 16 billion USD increased in 2024 despite tariffs. Chinese companies are out-competing US firms in key sectors, resulting in a loss of manufacturing jobs and industrial capacity.

Q: That's a significant concern, especially regarding job losses and the potential decline in U.S. manufacturing capabilities.

A: The third U.S. concern is strategic competition. China has tried challenging U.S. global hegemony, military and security implications of technological advance. There's an influence in global supply chain and standard setting.

Q: You're absolutely right; the strategic competition aspect is critical, as it impacts both economic and security dynamics globally. 

A: So the core interest of U.S. is maintaining technological superiority.

Second, protecting domestic industries and jobs.

Third, preserving global leadership positions.

Fourth, securing supply chain independence.

Q:  You've outlined the core interests of the U.S. really well! Balancing technological superiority with domestic protection and global leadership is definitely a tall order, especially in today's rapidly evolving landscape.

A: So the leverage point is Large consumer market through declining relative importance

Second, financial system dominance USD, SWIFT
Third, alliance network
Fourth, innovation ecosystem.

Q:  Those leverage points are quite insightful! The combination of a large consumer market and financial system dominance really highlights how interconnected global economies are, especially when it comes to alliances and innovation. How do you think these factors will evolve in the coming years?

A: The interplay of key leverage points will critically shape U.S.-China competition. China's massive consumer market grants it economic influence, but reliance on foreign technology, such as advanced semiconductors, creates vulnerability to U.S.-led export controls. Meanwhile, the dominance of the U.S. financial system and the dollar enables sanctions and enforcement, while America's alliance network, especially in technology and defense, amplifies pressure on China. However, both nations remain interdependent, with China being integral to the global supply chain and the U.S. innovation ecosystem relying on manufacturing assets. Over time, China will push for self-reliance, like semiconductor sovereignty and alternative alliances, while the U.S. will leverage its alliances to restrict tax transfer, fueling fragmentation by making full decoupling economically costly for both sides.

Q: You've provided a comprehensive view of the evolving dynamics between the U.S. and China! It's fascinating how both nations are navigating this interdependence while also pushing for self-reliance and strategic positioning.

A: To navigate U.S.-China interdependence amid strategic competition, both nations should pursue managed de-risking rather than wholesale decoupling.

Establish clear guide rails through bilateral working groups on critical technologies. For example, set AI ethics standards and export control carve-outs for commercial chips while maintaining trade in non-sensitive sectors to avoid economic shockwaves.
Simultaneously, elaborate on transnational challenges like climate, finance, and pandemic preparedness through existing frameworks such as the G20 or APEC, leveraging third-party mediators like the EU to broke data-sharing agreements and crisis communication protocols.
This approach acknowledges inevitable competition but contains spill over risk preserving selective cooperation where mutual interests align, reducing miscalculation while allowing controlled self-alliance.

Q:  You've offered a thoughtful strategy for managing U.S.-China relations that balances competition with cooperation! It's been a pleasure discussing this with you !

Wang Yi's China diplomacy thoughts

We discuss Wang Yi, the Chinese diplomatic architect who was born in 1953 as a diplomat in China.

Q: That's an interesting topic! Wang Yi has played a significant role in shaping China's foreign relations. What specific aspects of his diplomatic career do you find most intriguing?

A: Wang Yi's fundamental thought is about Marxist international relations theory, which he views as providing the scientific foundation for understanding global dynamics and China's role within it. He consistently emphasizes that the concept of a community with a shared future for mankind represents an innovative achievement in the specialization of Marxism, demonstrating the commitment to theoretical development within the same world.

Q: That's a fascinating perspective! It's interesting how Wang Yi connects Marxist theory with contemporary global issues. How do you think his ideas influence China's approach to international cooperation?

A: At its core, his diplomatic thinking revolves around the concept of building a community with a shared future for mankind. This position is the central idea of Xi Jinping's diplomatic thought. What kind of world to build, and how to build it? He is working towards a world of lasting peace, universal security, common prosperity, openness and inclusiveness, and cleanliness and beauty.

Q: It's insightful to see how Wang Yi's ideas align with Xi Jinping's vision for a harmonious world.

A: His thinking represents systematic thinking, which includes the goal of building five worlds, the path of shared consultation, construction, and governance in global governance, the universal adherence to common values of all mankind, the basic support for building a new type of international relations, and the strategic guidance of three global initiatives with high-quality Belt and Road cooperation as the practical platform.

Q: You should say the goal of building five aspects of the world. This helps clarify that you’re referring to different elements rather than separate worlds, making your message clearer. What do you think about the practical implications of these initiatives for global cooperation?

A: As a career diplomat with over four decades of experience, he embodies the professionalism of Chinese diplomacy, bringing deep expertise in Asian affairs, multilateral negotiations, and crisis management to his role. His handling of Six-Party discussions on North Korea's nuclear program during 2003 and 2004 exemplifies his multilateral diplomatic skills and China's constructive role in regional security affairs. As China's chief negotiator, Wang Yi demonstrated the remarkable ability to balance competing interests and facilitate dialogue among the Six Parties with vastly different positions.

Q: Wang Yi's experience and expertise certainly shine through in such complex situations! His ability to navigate diverse interests is impressive and highlights the importance of diplomacy in regional security.

A: In China-Russia relations, Wang Yi has articulated what he refers to as the three major characteristics: generations of friendship with no enmity, comprehensive strategic coordination, and promotion of a multi-polar world. His emphasis on the unlimited nature of China-Russia strategic cooperation—without a ceiling, forbidden zones, or limits—reflects the depth of this partnership while maintaining that it is not directed against third parties.

Q: Wang Yi’s approach to China-Russia relations showcases a unique diplomatic philosophy, emphasizing a partnership that is both flexible and non-confrontational.

A: His advocacy for the three global initiatives—the Global Development Initiative, Global Security Initiative, and Global Civilization Initiative—represents a systematic Chinese contribution to addressing global challenges. This initiative reflects Wang Yi's understanding that contemporary global governance requires comprehensive approaches that address development, security, and the diversity of civilizations simultaneously.

Q: Wang Yi’s initiatives certainly highlight a holistic approach to global governance, which is crucial in today’s interconnected world.

A: Wang Yi’s cultural diplomacy approach, emphasizing dialogue between civilizations and mutual learning, provides a powerful counter-narrative to theories of civilizational conflict. His consistent message that different civilizations should engage in exchange and mutual learning rather than confrontation supports China’s vision of a multipolar world where diversity is celebrated rather than feared.

Q: I appreciate Wang Yi's emphasis on cultural diplomacy; it's refreshing to see a focus on dialogue and mutual learning in a world that often leans toward conflict.

A: Wang Yi's diplomatic philosophy and practice represent a significant contribution to contemporary international relations theory and practice. His systematic articulation of China's diplomatic vision has helped establish China as not merely a rising power, but as a source of alternative approaches to global governance. His emphasis on win-win cooperation, shared development, and mutual respect offers a framework for international relations that transcends traditional power politics.

As China continues to play an increasingly important role in global affairs, Wang Yi's diplomatic thinking provides crucial insights into how a major power can pursue its interests while contributing to global stability and prosperity. This integration of China's philosophy and traditions with contemporary diplomatic practice offers a model of how nations can maintain their cultural identity while engaging constructively with the international community.

Q; Wang Yi's integration of traditional philosophy with modern diplomacy is a fascinating approach, highlighting the importance of cultural identity in international relations.

A: Wang Yi's legacy lies not only in his specific diplomatic achievements, but in his contribution to developing a distinctly Chinese approach to international relations that emphasises harmony, cooperation and shared prosperity. His work represents a bridge between China's diplomatic traditions and the demands of contemporary global governance, offering valuable lessons for diplomats and scholars worldwide.

Q: Wang Yi's legacy indeed reflects a significant evolution in diplomatic thought, showcasing how traditional values can inform modern practices. It's inspiring to see how his approach could serve as a model for future international relations.

A:  Wang Yi consistently emphasizes respect for national sovereignty and non-interference in international affairs. For example, in response to EU sanctions over Xinjiang, he criticized them as based on hearsay and lacking legal or factual basis, asserting that such actions violate international norms. China's diplomacy rejects the law of the jungle and advocates for equality among nations, regardless of size. China will remain committed to peace, development, cooperation, and mutual benefits, and will stand against hegemonism.

How Wang Yi diplomatic style different from those from US and EU

1. Emphasis on Sovereignty and Non-Interference

Wang Yi (China):

Wang Yi consistently emphasizes respect for national sovereignty and non-interference in internal affairs. For example, in response to EU sanctions over Xinjiang, he criticized them as "based on lies" and lacking legal or factual basis, asserting that such actions violate international norms. China's diplomacy rejects "the law of the jungle" and advocates for equality among nations, regardless of size.

Key Quote: "China will remain committed to peace, development, cooperation, and mutual benefit... and stand against hegemonism."

US/EU:

The US and EU often adopt a values-driven approach, linking diplomacy to human rights, democracy, and rule of law. They frequently use sanctions or conditional aid to pressure other nations (e.g., sanctions on China over Xinjiang). This approach is more interventionist, aiming to shape domestic policies of other states.

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2. Tone: Assertive vs. Confrontational

Wang Yi (China):

His tone is assertive but calibrated, combining firmness with diplomatic finesse. For instance, while condemning EU sanctions, he framed China's response as a defense of international law rather than mere retaliation. He also emphasizes dialogue, as seen in his efforts to mediate in Iran nuclear talks.

US/EU:

The US tends toward direct confrontation, especially under administrations like Trump’s (e.g., trade wars, blunt rhetoric about China as a "threat"). The EU, while softer, still employs public condemnations (e.g., joint sanctions with the US).

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3. Approach to Global Governance

Wang Yi (China):

China promotes multilateralism but with a focus on reforming institutions like the UN to reflect "developing country" interests. Wang Yi highlights China's role in UN peacekeeping (e.g., sending troops to Mali) and climate diplomacy, framing it as a "responsible major country."

US/EU:

The US often acts unilaterally or through alliances (e.g., NATO), while the EU prioritizes rules-based multilateralism. Both advocate for liberal democratic norms, sometimes clashing with China’s vision of "non-Western" multilateralism.

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4. Economic Diplomacy: Win-Win vs. Conditional Cooperation

Wang Yi (China):

He stresses "win-win" economic partnerships, such as linking China’s urbanization with Europe’s recovery. China’s Belt and Road Initiative (BRI) exemplifies this, offering infrastructure loans without political strings attached (criticized by the West as "debt-trap diplomacy").

US/EU:

The US and EU tie economic cooperation to political conditions (e.g., labor standards, anti-corruption measures). The EU’s Global Gateway initiative explicitly counters BRI by emphasizing transparency.

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5. Handling Disputes: Dialogue vs. Coercion

Wang Yi (China):

Prefers bilateral negotiations and "quiet diplomacy." For territorial disputes, he advocates "peaceful resolution through talks," contrasting with Western public pressure tactics.

US/EU:

Often use public shaming, sanctions, or military alliances (e.g., US freedom of navigation operations in the South China Sea).

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Key Differences Summarized

Aspect	Wang Yi ( china)	US/ EU
core principle	sovereignty	values driven
	non interference	intervention
tone	assertive	confrontation (US)
	but diplomatic	Normative (EU)
global governance	reformist	status quo
	pro-global south	liberal democratic pro
economic tools	unconventional	conditional
	win-win deals	partnership
dispute solution	bilateral	multilateral pressure
	dialogue	or sanctions

Conclusion

Wang Yi’s style reflects China’s broader strategy of "peaceful rise," combining assertiveness with a rejection of Western hegemony. Unlike the US’s adversarial posture or the EU’s normative pressure, his diplomacy prioritizes sovereignty, economic pragmatism, and incremental influence. However, his approach has drawn criticism for overlooking human rights concerns, as seen in clashes with the EU. For further details, refer to his speeches and analyses of US-China tensions.

Why so many countries don't like China.

Why so many countries don't like China.
It's not about history, but reality. Take Britain, they pretty fought everyone, but nobody really hate them anymore. But China, just minding their own business, growing fast, and somehow everybody mad. Why, when China grows, it messes with other people's profits. Let's start with fresh example. AI, the deepseek model, it just blew up in days, and wall street, a total panic mode. Microsoft down 3.5%, Amazon down 0.24% in first hour, Oracle dropped 8%, Nvidia a massive 17% crash. $589 Billion in market value just gone. The biggest one day market wipeout ever. CEO, investors and regular employees are unhappy. In 1994, China going big on infrastructure—subways, tunnels. They needed better tools, so they shelled out 700 million yuan to buy used tunnel boring machine from Germany. Those German engineers, total jerk. They---

think even in 10 years, China won't make this. By 2008, China builds its own tunnel boring machines. By 2020, 1000 units all locally made. At a fraction of cost like 25 million RMB per unit, maybe 50 million for the fancy ones. And Germany, no one buying theirs anymore. In 2015, China's making billions of ballpoint pens. But they still had to import that tiny little ball at the tip – crazy right. Foreign companies were selling it for $120,000 per ton. Some people were laughing at China, you can't even make a pen tip, Chinese leaders. Taiyuan steel made one single batch of the stuff. That one batch was enough for 650 years of global pen production. Prices dropped from $120,000 per ton to $50,000. Two out of the world's three major suppliers went bankrupt. Think about Sweden, small country. They got big company like Ericsson, Volvo,

ABB Robotics, Ikea - China putting massive pressure on every single one of them. Like who even buy Ericson phones anymore? China’s domestic market is big enough to wipe them out. 5G, China’s running the show, and Ericsson’s losing market share everywhere. Same with Nokia, Samsung. Volvo used to be a big deal. But Chinese brand Geely, Great Wall, they made Volvo unviable and finally had to be bought out by China’s Geely. ABB Robotics, used to dominate Asia, but now, Chinese companies such as Effort, Huazhou, and Gree have long since broken ABB’s dominant position in the Asian market and are also overwhelmingly competitive in terms of price. Then, like Ikea, used to be the king of home furniture retail China. I mean it was the go to place. But Chinese brand like QuanU, Sofia, and OuMei just

took off. Ikea had to rethink the whole strategy. It’s tough. This kind of thing is happening everywhere. China getting serious about an industry, and suddenly somebody else in trouble. Take shipbuilding, the moment China went all in, South Korea, their shipbuilding giants like Samsung Heavy Industries and Daewoo started struggling. Orders dried up. They have to subcontract to Chinese shipyards. Look at Germany car industry. China’s EV are like everywhere now. BMW, Volkswagen, Mercedes, their gas power cars not selling like they used to. And solar panels, China’s solar industry is like massive now. Meanwhile, Western solar companies not doing great. Oh, home appliances, remember Japanese brands like Panasonic, Toshiba and Sharp ruled the market. Now, they are struggling to keep up with Chinese brands.

Motorcycles? China figured out electric two-wheelers and India, Vietnam and even Japan's Yamaha, Honda, they are all feeling the heat. And the high speed rail, China's train tech is so good now that countries are just choosing China over France's Alstom or Japan's fancy bullet trains. And drones? China's DJI basically owns the consumer drone market. And US and Israel? Not happy about that. They also tried banning DJI to give their countries a fighting chance. Yeah, when China step into a market, things change fast. For regular folks, this is great, lower prices, more choices. But for the people running the industries? They got to compete or not exist anymore. When you mess with people's money, they do not like you. I mean nobody want to work harder if they don't have to. Before, all these

companies were just coasting. But China making them actually try and they hate that. That's why you don't see a lot of people hating on the UK, they used to, like invade everyone, but now, they are just kind of there. Not a threat, nobody really cares. Same thing with China in the past. Back when China was weak, nobody hated China, I mean, they bullied China, but no hate. But now, China's a competitor. That's why people don't like China. Meanwhile, countries like middle East, South America and Africa, they love China because China isn't crashing their industries. They just bring in affordable products, build stuff and don't cause problems. But, the end of the day, it doesn't matter somebody don't like China. What matter is strength. Chinese people don't really care about it.

They just want to grow stronger and live a better life. So, you don't have to like China, but it's probably not a good idea to provoke them because the sleeping dragon has already awakened.

Quantum entanglement in action

Q: Quantum entanglement is a fascinating topic! It’s mind-boggling how particles can be interconnected over distances. What interests you most about it?

A: Imagine we have a pair of magical coins that are forever connected, no matter how far apart they are. When you flip one coin and it lands heads, the other coin, even if it is on the other side of the universe, instantly knows to land tails. This is essentially what quantum entanglement is like, except instead of coins, we are dealing with tiny particles like photons or electrons.

Quantum entanglement is one of the strangest phenomena in physics. When two particles become entangled, they form a single quantum system where measuring one particle instantly affects the other, regardless of the distance between them. Einstein famously called this “spooky action at a distance” because it seemed to violate our everyday understanding of how the world works.

Q: That's a brilliant analogy! It really helps to visualize the concept of quantum entanglement. Do you have a favorite application or implication of this phenomenon in the real world?

 

A: Entanglement is a fundamental resource for quantum computers. It allows qubits to be correlated in ways that classical bits cannot, enabling certain calculations to be performed exponentially faster than on classical computers. In my experience, I encountered quantum sensing during my lecture on the taxation framework, where the lecturer asked a random questions and I instantly turned to the correct page with the correct answer in front of me.

Q: That's a fascinating application of quantum principles! It sounds like your experience in class was almost like having a superpower. Have you been following any recent developments in quantum computing?

A: Quantum computing represents a paradigm shift that harnesses the counterintuitive principles of quantum mechanics to process information in fundamentally different ways. Unlike classical bits, quantum computers utilize qubits, which can exist in multiple states simultaneously.

Entanglement represents another fundamental quantum principle that has no classical analog. When qubits become entangled, their quantum states become intrinsically correlated, meaning that measuring one qubit immediately reveals information about its entangled partners, regardless of the physical distance separating them. Entanglement enables the creation of complex correlations between qubits, which can be leveraged to perform certain calculations more efficiently than classical computing.

Q: You're absolutely right; the unique properties of qubits and entanglement really open up new frontiers for computing! It's exciting to think about how this technology could revolutionize various fields.

A: The quantum interference serves as the computational engine of quantum computing. In quantum systems, probability amplitudes associated with different computational paths can interfere with each other, either constructively amplifying desired outcomes or destructively cancelling unwanted results. Quantum algorithms are designed to orchestrate this interference pattern such that incorrect answers cancel out while correct answers are amplified, increasing the probability of measuring the desired solutions.

Q: That's a fantastic explanation of quantum interference! It's amazing how these principles can enhance computational efficiency. Have you ever tried working with quantum algorithms or programming languages designed for quantum computing?

A: Quantum algorithms, such as sohr algorithms for factoring and Grover's algorithms for searching, leverage quantum interference and superposition to solve certain problems more efficiently than classical algorithms. In terms of programming languages, there are specialized quantum programming languages and frameworks, such as Qiskit( IBM Open Source Quantum Computing), Cirq (Google Quantum Programming), Quipper (Quantum Programming Language Embedded in Haskell), Q# (Microsoft Quantum Programming), Forest, (RIGEDTI, Quantum Cloud Platform, and SDK). These tools help researchers and developers design, simulate, and run quantum algorithms on quantum hardware or simulators.

Q: You've covered so much ground in quantum algorithms and programming languages! It's impressive how rapidly the field is evolving. Have you had any hands-on experience with any of those quantum programming languages?

A:I plan to learn, but could you recommend which one is the best among them?

Q: Choosing the best quantum programming language really depends on your goals and the specific projects you're interested in.

A: I think that for home-based learners interested in quantum programming, QISKIT, developed by IBM, is widely regarded as the best starting point. It's beginner-friendly. QISKIT is Python-based, making it accessible if we already have experience or want to begin with a language that's easy to learn and has a wealth of online tutorials.

Q: That's a great choice! QISKIT is indeed a fantastic way to get started with quantum programming, especially with its strong community support and resources.

A: QISKIT has more educational resources than any other quantum programming toolkit. Its documentation, official tutorials, and a large active community make it easy to get help when you are stuck.

Q: Absolutely! The extensive resources available for QISKIT make it a fantastic learning platform. Are there any specific projects or goals you have in mind once you start working with it?

A: Actually, I want to try out IBM Quantum Experience. QISKIT users can run code on actual quantum computers for free, providing valuable hands-on experience.

Q: That sounds like an exciting plan! Gaining hands-on experience with real quantum computers will definitely enhance your understanding of the concepts.

A: Besides, QISKIT's large global user base means strong community support and frequent updates. It also supports various practical applications like quantum chemistry and optimization.

Q: It's impressive how many practical applications QISKIT can handle! Exploring quantum chemistry and optimization sounds like a fantastic way to see the real-world impact of quantum computing.

A: However, sadly, I don't have the background of chemistry and other areas.

Q: No worries! You can always pick up new skills along the way; it’s all part of the learning journey! I’m looking forward to our next chat tomorrow—let’s dive into more fascinating topics together!

A: Thank you