The Biden administration’s new tariffs on Chinese goods are primarily symbolic and political, with negligible economic impact, but they aim to protect and foster the U.S. clean energy supply chain, particularly in the EV sector. However, the tariffs are politically motivated and could undermine industrial policy goals by focusing on geopolitical competition rather than applying uniformly to all countries.

While high officials in the Biden administration — and President Joe Biden himself — have repeatedly proclaimed that America does not seek to decouple from China, the latest move to impose extreme tariffs on certain Chinese goods goes in exactly that direction. It’s a bad idea driven by U.S. election year politics.

China's post-COVID economic outlook challenges the comparisons to Japan's economic slowdown experience. Resembling 1990s South Korea, China has substantial growth potential through structural shifts toward a consumption-driven economy and inter-governmental reforms for sustained high-quality growth.

As China grapples with enormous challenges – including an imploding property sector, unfavorable demographics, and slowing growth – doubts about the future of the world’s largest growth engine are intensifying. Add to that China’s geopolitical rise, together with deepening tensions with the United States, and the need to understand China’s political economy is becoming more urgent than ever.

The short answer is yes, but they must be willing navigate their differences in constructive ways. A good playing field on which to start is new-energy vehicles. Joint efforts by major Chinese and American EV players could accelerate the industry in America and fuel exports to the rest of the world.

The Government Work Report has defined China’s policy goals and priorities for 2024. High-quality economic and social development beckons.

China's focus on electric vehicles (EVs) over internal combustion engine cars - the "Great Leapfrogging Forward” - has significantly reshaped the global industrial landscape to China's benefit. Recognizing and accurately assessing China's capabilities instead of propagating unfounded narratives about its imminent decline constitutes the foundational first step in competing effectively with China.

Defining the relationship between China and the United States primarily as one of competition — as the U.S. is doing — is dangerous and not advisable. Competition can easily turn into conflict. The long-term U.S. posture on this will depend upon the outcome of the presidential election.

Contrary to recent forecasts by various international organizations, the author believes that China’s economy in 2024 will buck the trend and trace a new curve. Growth will reach upward toward 5 percent and beyond in 2025 as the country shakes off the lingering impact of COVID-19 and returns to an appropriate range.

The only way to ensure more robust and sustainable growth is creating new patterns and new productive forces. Following the San Francisco Vision, the governments and business communities of both China and the United States should lose no time getting on board.