U.S.: China

An abbreviation referring to relations between the United States and China; a competitive and cooperative relationship that forms a core axis of the 21st-century international order.

U.S.–China

Overview

U.S.–China (美中) is an abbreviation referring to the United States (美) and China (中) together, and usually means the diplomatic, economic, and military relationship between the United States and China. The two countries, which emerged as the biggest beneficiaries of globalization after the end of the Cold War, formed a two-power system called the "G2" in the 21st century. Since the late 2010s, bilateral relations have shifted to a phase of "strategic competition" in which cooperation and competition intersect, and conflicts over issues such as technological hegemony, supply chains, Taiwan, and the South China Sea are spilling over into the global economic and security order as a whole.

Main Content

Historical Background

President Nixon's visit to China in 1972 and the establishment of formal diplomatic relations in 1979 were products of strategic cooperation to check the Soviet Union within the Cold War structure.
From the 1980s to the 2000s, the two countries deepened economic interdependence, and China grew into the "factory of the world" after joining the WTO in 2001.
Starting with the 2008 global financial crisis and China's rise to the world's second-largest GDP in 2010, arguments for containing China spread within the United States.

Economic and Trade Conflict

The United States raised its trade deficit with China as a key issue and imposed large-scale tariffs starting in 2018, and China responded with retaliatory tariffs and export controls on rare earths and critical minerals. Supply chain restructuring (de-risking) is underway around strategic industries such as semiconductors, batteries, and solar power, and the share of direct U.S.-China trade is declining while indirect trade via third countries such as Vietnam, Mexico, and India is increasing.

Technology Hegemony Competition

Semiconductors, AI, quantum computing, and 5G are the key battlegrounds. The United States is gradually controlling exports to China of advanced semiconductor equipment, design software, and AI chips, while China is injecting large-scale funds into building its own ecosystem and state-led semiconductor development. Between so-called "decoupling" and "de-risking," global companies' strategic choices are diverging.

Security and Geopolitical Issues

Taiwan issue: Cross-strait relations are the greatest fuse in U.S.-China conflict, with U.S. arms sales to Taiwan and tensions in the Taiwan Strait recurring.
South China Sea: Freedom of navigation operations and territorial disputes are constant sources of friction.
North Korea and the Korean Peninsula: U.S. and Chinese interests sharply conflict in denuclearization negotiations and discussions on a Korean Peninsula peace regime.
Russia-Ukraine, Middle East: The two countries take different positions in international conflicts and compete for influence.

Implications for South Korea

South Korea is placed in a situation of "strategic ambiguity" in which it simultaneously maintains an alliance with the United States in security and dependence on trade with China in the economy. Semiconductor export controls, the THAAD deployment conflict, and participation in supply chain cooperation bodies (IPEF, CHIP4) are key variables in South Korean diplomacy.

Latest Trends

In 2024–2025, U.S.-China relations can be summarized as a phase of "managed competition." After the 2023 San Francisco summit and the restoration of currency and military communication channels in 2024, summit-level dialogue continued, but structural conflicts have not been resolved. Following the 2024 U.S. presidential election, the stance of containing China was maintained on a bipartisan basis, and tariff, export control, and investment restriction measures are instead expanding.

In particular, strengthened export controls in AI and semiconductors, weaponization of critical minerals such as rare earths, gallium, and germanium, and competition over electric vehicle and battery subsidies emerged as key issues in 2025. China is leading a multipolar order by expanding its own supply chains and yuan settlement network, while the United States is responding through technology alliances with allies. Limited cooperation in areas where collaboration is possible, such as climate change, drugs (fentanyl), and AI safety, is also being pursued in parallel.