The USA and China have been increasingly locked heads throughout 2021. Even as the two countries venture together on trade and defense policies, it is marked by doubts and hostility. In this post, we will explore what we can expect in the year 2022

Winter Olympics

The 4^th of Feb marks the beginning of the Winter Olympics and China has been getting ready to host many athletes. This is not without controversy as many countries including the US, UK, and Australia are making a diplomatic boycott of the Beijing Winter Olympics with the US taking the lead. They have refused to send government officials to China.

As February approaches, the tensions are likely to peak as the US uses the boycott to bring the world’s attention towards the Uyghur Muslim minority in Xinjiang. Furthermore, Beijing continues to censor more and more pro-democracy activists in Hong Kong under the national security law put in place in 2020.

Taiwan

Under President Xi Jinping, China is looking to unite Taiwan to the mainland. And hence it is expected to oppose any diplomatic recognition of Taiwan. In the same line, it also resists any attempt of Taipei to participate in any international organizations.

In 2021, the US sent unofficial delegations to Taiwan expressing their support for the government of President Tsai Ing-wen. However, China opposes Taiwanese recognition as a country and doesn’t encourage any attempts regarding the same.

Tech and Cyber Security

Cyber Security is the center point affecting the economic policy of both US and China and their continued relations. The reason is the US doubting China to be behind the massive data hacks in 2021.

The US will continue to isolate Chinese Technology in 2022, especially the 5G and the global deployment of the latest Communications technology. The US is also looking to implement strict restrictions to limit the technology transfer to China.

TRADE “Phase One Agreement”

Even though the world is still suffering from Covid, the global economy starts to recover, and with it, an increase in the demand for goods means more international trade in China. Both USA & China have a strong interest to cooperate in trade despite the disputes, this is because China remains the U.S.’s largest supplier.

“China is currently our largest goods trading partner, with $559.2 billion in total (two-way) goods trade during 2020. Goods export totalled $124.5 billion; goods imports totalled $434.7 billion. The U.S. goods trade deficit with China was $310.3 billion in 2020.” Office of the United States Trade Representative

With the interest of boosting the trade between the two countries, they signed an economic and trade agreement “Phase One Agreement”, These trades expected certain reforms in China’s economic and trade regime. Covid made this different, as it is now more in a socialist direction. This Agreement also requires substantial purchases of U.S. Goods & Services, targets that are yet to be met.

There is yet to see what the future will bring as both countries have a lot of domestic affairs to look for.

We certainly hope that the U.S. –China Relationship can come to a better place in 2022 as the world is in need to work together to leave covid behind.