According to Business Insider, Claremont College professor McKenna Mingxin Peya points out that China and the US are prioritizing national security over economic growth.
However, according to the expert, the United States will eventually win, while China will most likely suffer and will not be able to catch up with the United States.
Writing for Bloomberg Opinion, Pei notes China's recent ban on US semiconductor company Micron's products, as well as an attempt to pass an inflation-reducing law in the US that would exclude the export of some Chinese clean energy products.
At the same time, he emphasizes that the loss of access to American technologies and the market will have a high price for China, but China believes that the growth of the US economy will also suffer from such competition. China also hopes that in the long term its economic growth will outpace the US and it will be able to catch up with the world's first largest economy.
However, China does not take into account the huge costs associated with a security-oriented development strategy. The data show a decline in demand and output in China, indicating a miscalculation in expectations of a quick recovery from the pandemic.
Foreign companies wishing to do business in China will have to face security investigations and an updated espionage law.