The U.S. Still Holds An Advantage Over China

Washington will be able to win if it joins forces with its allies.

Despite Beijing’s recent successes in the trade standoff with Washington, the U.S. still possesses more powerful economic levers, according to the authors of Foreign Affairs Ben Weigel and Stephen Brooks (translation by Charter97.org).

The concessions made by the administration of U.S. President Donald Trump following China’s restrictions on rare earth metal exports were not due to the weakness of the American economy, but rather to the inability to effectively leverage its own advantages.

China was indeed able to strike a blow against the U.S. by leveraging its control over approximately 70% of global rare earth production and about 90% of rare earth processing. These materials are essential for the production of electric vehicles, medical equipment, and modern weapons.

“Such leverage has its limits. Bottlenecks turned into weapons lose their effectiveness over time,” the researchers believe. Countries can create alternative supply chains.

Washington’s main advantage lies in high technology. The U.S. and its allies control key sectors—from microchip development to the production of aviation equipment. China remains dependent on Western technology and component supplies.

Cooperation with partners in Europe and Asia will be a decisive factor. Acting alone, the U.S. can inflict only minor damage on Beijing, but joint action by allies can significantly increase the pressure.

“The United States and its partners possess a vast reserve of untapped economic power,” write Weigel and Brooks. Washington must not distance itself from its allies but rather build a broad economic coalition capable of countering Chinese influence.

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