Introductions
The United States began to exist on July 4, 1776, through the Declaration of Independence. The United States practices the ideology of democracy, in which leaders are chosen through elections because every citizen has the right to participate in selecting their government. Meanwhile, the People’s Republic of China (PRC) was established on October 1, 1949 and practices the ideology of communism which founded by Chen Duxiu and Li Dazhao. This ideology emphasizes collective ownership and the idea that all citizens hold equal rights under the state, without marginalization.
The fundamental differences between these two ideologies and systems of government shape how each country defines power, governance, and national interests. The United States prioritizes political pluralism, individual freedoms based on liberalism structure, and market-oriented capitalism in economic aspect, while China emphasizes centralized authority governance, collective stability, and state-led economic development. These contrasting foundations influence their domestic policies and foreign strategies, often leading to differing perspectives on democracy, human rights, economic management, and global order. As a result, ideological divergence is not merely a theoretical distinction but a core factor that fuels strategic rivalry and shapes how both powers interact on international space.
At first, the United States emerged as a dominant developed economy, but over time, the United States manage to develop economic growth, positioning itself as a central actor in the global economic order. However, China’s remarkable economic transformation culminating in its rise as Asia’s largest economy after surpassing Japan has significantly altered this landscape. Supported by its vast labour force, large-scale industrial production, and increasing technological capabilities, China has attracted substantial Western investment and expanded its influence in global markets. This rapid rise has intensified strategic competition between China and the United States across economic, political, and security spheres, leading the United States to adopt policies aimed at limiting China’s technological advancement and geopolitical expansion.
The rivalry between these two major powers has far reaching global implications. As competition deepens, a balance of power becomes crucial for maintaining international stability. As competition deepens across economic, technological, and military domains, which other countries are increasingly drawn into the strategic orbit of either Washington side or Beijing side. This dynamic creates pressure on smaller and middle powers to carefully balance their diplomatic, economic, and security interests without fully aligning with one side.
The United States reinforces its strategic position through alliances such as North Atlantic Treaty Organization (NATO) to strengthen collective defense, while China enhances its strategic alignment with countries like Russia and North Korea, all of which possess significant impact to reshape international landscape. In this context, the formation of security alliances functions has a mechanism to counterbalance power and reduce the risk of large-scale conflict, contributing to regional and global stability amid intensifying geopolitical rivalry.
Economy
Rivalry between the United States and China in economic aspects can be seen through trade wars and tariff restrictions, and the utilization of economic statecraft. The competition was largely driven by the United States’ strategic dilemma over China’s expanding global economic influence. China’s economic emergenc`e and influence on international economic landscape have led the United States to perceive it as a potential threat to American dominance across the globe. This concern is reflected in China’s industrial strategy by launching Made in China (2025) which aims to strengthen technological leadership and global supply chain control, intensifying competition between the two powers. The long term of this policy, China wants to obtain control over the most profitable segments of global supply chains and production networks. If successful, Made in China 2025 could accelerate the erosion of industrial countries’ current technological leadership across industrial sectors (Jost Wubbuke, Mirjam Meissner, Max J. Zenglein Jaqualine and Bjorn Conrad, 2025).
Trade war between the United States and China is not just an economic dispute but a strategy by the United States to curb China’s rise as a global economic powerhouse. The United States uses an economic statecraft approach where the economy is used to achieve national interests, such as imposes tariffs on China to certain strategic sectors like industrial and high-tech goods in stages. While tariffs function not only as a form of economic protection, but they are also a message that the United States is willing to use its domestic market as a source of power. This action is taken to put economic pressure on China, but China reacts by imposing retaliatory tariffs on Washington, strengthening the domestic market, accelerating local technological innovation and diversifying export markets through the Belt and Road Initiative (BRI). The United States also uses weaponized interdependence, which is a strategy where dominant countries in the global economic network use their advantages to force or restrict the actions of other countries (Farrell and Newman, 2021).
In the context of the United States and China, the United States uses the economy as a tool for pressure on China’s strategic interests. China responds by emphasizing a policy of self-reliance and domestic technology development. However, China still faces certain technological limitations that expose it to geoeconomic pressures.
Security
The power competition in security between the United States and China is part of China’s increasingly rising global power transition, posing a challenge to the strategic dominance of the United States, especially in the Indo-Pacific Region. This competition occurs not only through military power but also involves diplomatic relations, regional influence, and strategic technology (Fravel, 2022). Fear of China’s power increase makes power competition inevitable, which leads to conflict and poses a security dilemma for the United States. The United States sees China as a threat to its hegemonic position, while China demands recognition and space for influence in the ASEAN region.
Also, geostrategic position of the South China Sea has made it a major arena of competition between the two great powers. China builds artificial islands and military bases to strengthen control in the South China Sea, while The United States conducts Freedom of Navigation Operations (FONOPS) to maintain maritime freedom in the region. In Taiwan Strait, China claims that Taiwan is part of its territory, while the United States supports Taiwan’s defense and independence which increases tensions between the two great powers. Moreover, both countries are investing heavily in advanced military technologies, including cyber capabilities, artificial intelligence, and missile defense systems to enhance strategic advantages over one another. These developments increase the complexity of security dynamics in the region and also affect regional countries where they need to implement strategic hedging to maintain their autonomy, balancing their economic and security interests while avoiding direct alignment with either superpower.
Politic
The most discussed political issue when the United States and China involve trade which imposes tariffs on China and the impact on other countries as well. President Donald Trump has imposed the highest tariffs ever 245 percent in response to Beijing’s trade retaliation, causing an economic war and impacting to the other countries that import from China, which also affected to the economies of other countries (Bernama, 2025). The president purpose in doing so was because the tax rates that were burdening the United States’ finances at the time, including the iPhone products that were made in a Chinese factory even though the iPhone belongs to the United States. This situation has caused international politics to experience imbalance due to political issues between China and the United States. Taiwan is also often a political issue between China and the United States because China sees Taiwan as an integral territory that cannot be separated from the mainland territory. However, historical difference between Taiwan and China has caused Taiwan to be poorly managed cause the Chinese government implements Welfare One country two system. On the other hand, the United States has stated that Taiwan is not part of China and an independent country due to its economic, political, and socio-cultural systems, which are different from China (Kubah, 2014). This situation has caused political issues between China and the United States to heat up due to American interference in Chinese affairs.
Conclusion
The rivalry between the United States and China spans multiple areas, including the economy, security, and politics, with significant impacts on other countries worldwide. Economically, trade disputes and tariff wars highlight the strategies of both nations to protect and expand their national interests. The United States uses tariffs and “weaponized interdependence” to pressure China, while China emphasizes technological self-reliance, strengthening its domestic market, and expanding global influence through initiatives such as the Belt and Road Initiative (BRI). In terms of security, China’s growing military power and geopolitical influence in the Indo-Pacific, particularly in the South China Sea and Taiwan Strait, create a security dilemma for the United States. Activities such as China’s construction of artificial islands and military bases, and US Freedom of Navigation Operations (FONOPS), demonstrate that the rivalry involves both economic and strategic dimensions. Politically, this tension affects global stability as disputes disrupt international trade and diplomatic relations. Overall, the US-China rivalry illustrates how modern great-power competition combines economic, technological, security, and political strategies, influencing not only bilateral relations but also the broader balance and stability of the global system.
References
Bernama (2025) White House umum China berdepan tarif sehingga 245 peratus akibat tindak balas dagang. Astro Awani. Available at: https://www.astroawani.com/berita-dunia/white-house-umum-china-berdepan-tarif-sehingga-245-peratus-akibat-tindak-balas-dagang-516864 (Accessed: 2025).
Farrell, H. and Newman, A.L. (2021) ‘The Janus face of the liberal international information order: When global institutions are self-undermining’, International Organization, 75(2), pp. 333–358. doi: 10.1017/S0020818320000302.
Fravel, M.T., Lavelle, K. and Odgaard, L. (2021) ‘China engages the Arctic: A great power in a regime complex’, Asian Security, 18(2), pp. 138–158. doi: 10.1080/14799855.2021.1986008.
Mercator Institute for China Studies (MERICS) (2016) Made in China 2025: The making of a high-tech superpower and consequences for industrial countries. Available at: https://kritisches-netzwerk.de/sites/default/files/merics_-_made_in_china_2025_-_the_making_of_a_high-tech_superpower_and_consequences_for_industrial_countries_-_76_seiten_1.pdf.
Mubah, A.S. (2014) Kajian sejarah atas kerumitan isu Taiwan dalam hubungan China dan Amerika Serikat. Departemen Hubungan Internasional, Universitas Airlangga.
