Economic Entanglement: How Trade and Technology Fuel Rivalry and Cooperation

Global trade and technology networks have created a world of deep economic interdependence, even among rival powers. This entanglement complicates the strategic rivalry between the United States and China, where cooperation and competition exist side by side.

Most iPhones, a symbol of technological innovation, are assembled in China, highlighting the challenges of relocating manufacturing. Efforts to diversify supply chains face high costs and logistical complexity, underscoring the depth of economic ties.

Platforms like TikTok have achieved global ubiquity, raising concerns about data security and cultural influence. These issues complicate efforts to limit Chinese technological reach and underscore the blurred lines between economic interests and national security.

Trade disputes, export controls, and investment scrutiny reflect the ongoing tensions in this economic rivalry. Policymakers must balance the benefits of engagement with the risks of dependency and strategic vulnerability.

For further insights, detailed studies and books such as David E. Sanger’s 'New Cold Wars' provide comprehensive analyses of these economic dimensions. ^{3 2}