Former Treasury Secretary Larry Summers warns that China's economy is hitting a wall and that US GDP is set to exceed China's for another generation, highlighting the need to be vigilant about the Chinese geopolitical challenge.
China's economic weakness may pose challenges for developing economies and regions that rely on it, but the US economy is well positioned to navigate these headwinds with its investments and resources, according to US Deputy Treasury Secretary Wally Adeyemo.
Despite U.S. trade shifting away from China, the country still relies on China-linked supply chains, leading to higher costs for consumers and uncertain benefits in terms of improved manufacturing efficiency, according to research presented at a Federal Reserve symposium.
China's dominance in rare earths poses vulnerabilities for U.S. supply chains and highlights the need for diversified options, according to U.S. Trade Representative Katherine Tai.
China defends its business practices and claims that most U.S. firms want to stay, despite Commerce Secretary Gina Raimondo stating that China has become "uninvestible" due to fines, raids, and other actions that make it risky to do business there.
The US is importing fewer goods from China, with Chinese imports making up the lowest share since 2006, as supply chains shift to countries like Mexico and Vietnam.
A US factory is revealed to be under Chinese state control.
US companies with significant revenue exposure to China are at risk due to the country's struggling economy, characterized by high youth unemployment rates and recent property defaults, according to Bank of America.
The US Treasury Secretary, Janet Yellen, expressed concerns about China's economic challenges and its potential impact on the global economy, while also noting that China has the policy tools to address these challenges.
US President Joe Biden believes that China's current economic crisis will prevent them from invading Taiwan, as Chinese President Xi Jinping is preoccupied with handling economic issues and is unlikely to have the capacity for aggression towards Taiwan.
China's economic problems are more likely to impact its neighboring countries and Europe than the United States, according to U.S. Deputy Treasury Secretary Wally Adeyemo, who emphasized the need for China to address its structural economic issues.
The United States may not be prepared for a potential conflict with China, warns Air Force Secretary Frank Kendall, emphasizing the need for deterrence and major changes to optimize the Air Force and Space Force.
U.S. Treasury Secretary Janet Yellen believes that the U.S. economy is on a path of a "soft-landing" and can withstand near-term risks, including a United Auto Workers strike, a government shutdown threat, a resumption of student loan payments, and spillovers from China's economic issues.
Treasury Secretary Janet Yellen states that U.S. growth needs to slow to its potential rate in order to bring inflation back to target levels, as the robust economy has been growing above potential since emerging from the COVID-19 pandemic. Yellen also expects China to use its fiscal and monetary policy space to avoid a major economic slowdown and minimize spillover effects on the U.S. economy.
Major U.S. companies are increasingly seeking manufacturing alternatives in countries like India to diversify their supply chains and reduce dependence on China due to the pandemic and escalating tensions between Washington and Beijing.
The process of derisking supply chains from China, as the U.S. seeks to reduce its dependence, introduces new risks that must be identified, evaluated, mitigated, and responded to by American firms.
China's state-owned enterprises (SOEs) must prioritize self-reliance in science and technology to ensure their survival and protect national security, as they play a crucial role in China's economy and strategic intentions, according to the State-owned Assets Supervision and Administration Commission. The regulator also emphasized the need for further reform to increase SOEs' competitiveness and highlighted the importance of protecting supply chains and energy resources.
Liza Tobin argues that it is not China's economic growth that poses a risk to US national security, but rather its zero-sum tactics to achieve that growth, and therefore the US should target China's tactics and not its growth. On the other hand, Pavneet Singh believes that China's strategic intent to surpass the US as the world's economic and technological superpower presents significant risks, and the US must significantly increase its investment and coordination to compete with China. Cameron F. Kerry emphasizes the need for a measured response to China's growth and warns against a strategy aimed at keeping China down, while Mary E. Lovely argues that seeking to limit China's growth weakens the US and that the US should focus on targeted responses to harmful Chinese practices.
China's No. 2 diplomat stated that the U.S. must respect China's red lines, including core issues like Taiwan, in order to cooperate on global challenges such as climate change and artificial intelligence, ahead of a possible meeting between President Joe Biden and Chinese President Xi Jinping.
