From Mao and Nixon to Xi and Trump: A history of China-US trade

The economic relationship between the United States and China has evolved from 18th-century trade in tea and silk to a complex, modern interdependence defined by manufacturing shifts and geopolitical tension. Chad P. Bown, a senior fellow at the Peterson Institute, traces this trajectory, highlighting the 2001 WTO accession as a pivotal moment intended to integrate China into a rules-based system. While this transition initially lowered consumer prices and benefited American corporations through access to low-cost labor, it simultaneously triggered significant domestic economic displacement. By the 2010s, the limitations of existing trade frameworks became apparent, leading to a shift toward protectionist measures like tariffs. Current diplomatic efforts face challenges, as China’s dominance in critical supply chains, such as rare earth minerals, limits American leverage, leaving little room for immediate, substantive resolution to deep-seated structural conflicts.