It’s US vs. China in an Increasingly Divided World Economy
TikTok and fast-fashion giant Shein are also building large businesses in the U.S., though they face political pressure that could constrain their growth. While U.S.
imports of Chinese products such as semiconductors and IT hardware have tumbled in response to tariffs, purchases of toys, games and other products not hit by Trump-era duties have soared, according to analysis by the Peterson Institute for International Economics. Chinese officials say they still welcome Western investment, including companies like Tesla, which is scaling up battery production in Shanghai.
Washington describes its policy toward China as “a small yard with a high fence," meaning it only wants tight controls in sensitive sectors such as computer chips, but otherwise wants bilateral trade and investment to continue. Still, the evidence suggests the loosening of economic ties between China and the U.S.-led West is gathering speed.
In September, Xi skipped a meeting of the Group of 20 major economies after Beijing persuaded members of the Brics economic group, with Brazil, Russia, India and South Africa, to invite more members, including Egypt and Iran. “We are at the end of the beginning," said Adam Slater, lead economist at Oxford Economics.
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