Interdependence vs. Geopolitics: Securitization and Partial Recoupling of Sino-American Relations

Abstract

Economic interdependence is traditionally viewed as essential to peace and cooperation in international relations. However, in an era of rising geopolitical competition, broad economic ties have become a new source of tensions and conflicts. This chapter analyzes how strategic competitions and political tensions shape economic and technological ties between the United States and China. There are enduring problems in the relationship. Bei**g worries that the U.S. will disrupt China’s domestic order, while Washington is concerned about China’s challenge to the U.S.-led international order. Security concerns of both countries have shaped their policies toward each other. The scenario of complete decoupling is too costly for both economies. Despite political tensions, the United States and China must be prepared to cope with each other as a major power for a long time. With the framework of competitive coexistence, China and the United States should build a responsible and resilient recoupling scenario. Unlike complete and limited decoupling, recoupling seeks to preserve most normal economic ties between the two countries while carefully managing dependencies and risks.