China’s trade practices have long been a source of tension with the United States, with multiple administrations accusing Beijing of unfair tactics that distort global markets. The Chinese government’s use of state subsidies, intellectual property theft, and forced technology transfers has created an uneven playing field, harming American industries and workers.
gives Chinese companies an artificial edge. Beijing pours billions into industries like solar panels, electric vehicles, and steel production, allowing firms to flood global markets with cheap goods. This undermines foreign competitors who operate without government handouts. For example, China’s “Made in China 2025” plan openly targets dominance in advanced technologies through state funding and market barriers.
remains a persistent issue. Chinese firms have stolen trade secrets from American companies, costing U.S. innovators billions annually. In one case, a hospital researcher was sentenced to prison for conspiring to steal pediatric medical research and selling it to China. Cyberattacks sponsored by the Chinese government have also targeted sensitive U.S. technology, further eroding America’s competitive edge.
includes currency interference and dumping products below cost. By devaluing the renminbi, China makes its exports cheaper abroad while raising prices on imported goods. This tactic has contributed to the massive U.S. trade deficit with China, which reached $375 billion in 2017 alone. Additionally, China imposes high tariffs on American goods like cars (25%) compared to the 2.5% rate the U.S. charges on Chinese vehicles.
have aimed to counter these practices. President Trump’s tariffs targeted Chinese imports, while the Biden administration quadrupled duties on electric vehicles and tightened export controls on advanced technology. The Department of Justice’s China Initiative prosecuted economic espionage cases, though critics argued it risked racial profiling. Despite these efforts, China continues exploiting loopholes in global trade rules, often ignoring WTO rulings against its subsidies and restrictions.
The economic rivalry reflects deeper systemic differences. China’s state-controlled model clashes with free-market principles, enabling practices that would be illegal in democratic nations. While tariffs and sanctions have slowed Beijing’s aggression, lasting solutions require unity among U.S. allies and stricter enforcement of international trade norms. Without meaningful change, China’s cheating will keep skewing the global economy in its favor.
