KARACHI:
In recent years, the competition between the US and China has intensified greatly. This is evident through both country’s economic and military prowess. The US economy that was once considered the largest economy in the world now faces competition from the China. The Chinese economy has witnessed an exponential growth and economists have estimated that it will become the world’s second-largest economy, surpass the US by 2028.
Tensions between China and the US intensified during Trump’s presidency, which is when the US imposed trade barriers and tariffs on China. The trade war had a detrimental impact on both countries. The US recently strengthened ties with India as its strategic partner to counterweigh China. Furthermore, India and the US have signed a defence deal. Such agreements are aimed towards countering China’s dominance. The G7 also launched the Build Back Better World (B3W) project, which is aimed at competing with China’s trillion-dollar Belt and Road Initiative (BRI). BRI focuses on strategic infrastructure, whereas B3W will focus on climate, health, digital technologies, and gender equality.
China has also invested in economic and strategic projects in its neighbouring countries. An example of this is the flagship project of the BRI i.e. CPEC. China also signed a 25-year strategic cooperation agreement in March 2021, which covers a range of economic activities. To compete with China, the US will need to invest in the supply chain ecosystem. China on the other hand is working on building a solid manufacturing infrastructure. China appears to be on the right path of replacing global dominance as well as restoring peaceful relations to avoid conflict. The US and Europe may introduce rules and regulations to cause disruptions for China. A conflict between the US and China can have an adverse impact on Pakistan as well. To alleviate any adversarial impact, Pakistan must identify a middle ground where it can protect its economic, strategic and security interests.
Bilawal Ali
Hyderabad
Published in The Express Tribune, August 26th, 2021.
Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.
