WASHINGTON: From a trade imbalance to technological competition, a host of economic flashpoints are boosting tensions between Washington and Beijing — and these are among areas in which both Republicans and Democrats can agree.
What’s behind these concerns?
American debt
Republicans in particular are worried about this issue, concerned that China holds too much American debt.
The fear is that Beijing could use this to pressure Washington by threatening to resell its bonds, bringing down the value of holdings.
While the American debt exceeds $34 trillion, only around $8 trillion is held abroad.
China is a key holder of US debt, accounting for $816 billion and just over $1 trillion when Hong Kong is included, according to Treasury Department figures.
But it is the second biggest foreign holder behind Japan — which holds $1.1 trillion — and ahead of Britain.
Tech race
US President Joe Biden has focused on tech, noting its importance to ensuring national security.
Be it in semiconductors, artificial intelligence or electric vehicles, Washington is seeking to stay ahead or catch up with Beijing in various areas — including to prevent advanced tools from falling into the hands of the Chinese military.
A major target during former president Donald Trump’s term was telecoms giant Huawei, which the United States sought to keep out of its 5G networks and those of allies.
Restrictions grew under the Joe Biden administration, especially involving cutting-edge semiconductors necessary in AI development.
The goal, said Commerce Secretary Gina Raimondo in October, is to limit Chinese access to advanced chips that could fuel breakthroughs in AI and sophisticated computers that are critical to military applications.
In the field of critical minerals, of which Beijing has ample supplies, Washington has also been seeking to circumvent China.
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