The new US administration is currently formulating its policy toward China. However, the new president will be required to consider the complicated legacy that the previous authorities have left in US-China relations. Thus far, there has been no indication of an imminent revision of this approach.
Former US President Trump and his team have maintained their resolute approach to China’s containment, which has the potential to not only intensify competition between the two nations but also to spiral out of control.
During the final year of the Biden administration, the United States forcefully pursued its interests in two primary areas of competition with China: military containment in the western Pacific, specifically in the Taiwan issue and the South China Sea, and trade and economic matters, particularly in semiconductor manufacturing, at the expense of China’s interests and concerns.
Washington has employed creative methods to justify a variety of trade restrictions and sanctions against China. The United States has cited threats to economic security to restrict the access of Chinese commodities to its market or threats to national defense to prevent American companies from collaborating with Chinese semiconductor and electronics manufacturers as a result of its strained economic competition with China and influence in the Global South.
Washington also turns to universal narratives such as “forced labor” and “human rights violations in China.”
The outgoing Biden administration hurriedly authorized a series of decisions on various forms of military aid at the end of 2024, including Taiwan. The United States authorized a $571.3 million “defense order” for Taiwan in November 2024. In addition, Washington disclosed the prospective sale of 76-mm gun mounts with spare parts for ships and upgraded Link-16 data transmission systems, which are estimated to be worth $295 million.
Link-16 is a component of a NATO military tactical data transmission network that facilitates the exchange of tactical information in near real-time between aircraft, ships, and ground vehicles through text, images, or voice technology.
This aid package was the third of its kind, following the $567 million and $345 million allocations that were announced on September 30, 2024, and July 28, 2023, respectively. In October 2024, the US State Department authorized the potential sale of spare parts for Taiwan’s F-16 aircraft and radar systems, which is estimated to be worth $385 million, just prior to the most recent November transfer.
Zhu Fenglian, a spokesperson for the Taiwan Affairs Office of the State Council of China, responded promptly, describing it as an erroneous signal from Washington to separatist forces. Zhu stated that China would implement “firm and resolute measures to safeguard national sovereignty, security, and territorial integrity.”
According to Chinese analysts, Biden’s substantial military aid allocations to Taiwan prior to the transition of the US administration were intended to exert pressure on the Trump administration to adopt a more assertive approach toward inciting an armed conflict over Taiwan.
These arms shipments, according to Chinese military expert Song Zhongping, solely preserve Taiwan’s current military capabilities without providing substantial enhancements.
Previously, in March 2023, the Biden administration approved a significant deal with Taiwan under its first arms sale plan of the year. The deal included F-16 weapons and related gear worth a total of $619 million. It included 100 high-speed anti-radiation missiles (AGM-88B), 23 HARM training missiles, 200 AIM-120C-8 advanced medium-range air-to-air missiles, and 26 LAU-129 multipurpose launchers.
Mao Ning, a spokesperson for the Foreign Ministry of China, responded by asserting that the country “will persist in implementing firm and resolute measures to protect its sovereignty and security interests.”
In late November 2024, the outgoing Biden administration not only provoked threats to China’s territorial integrity but also further strained US-China economic relations. New restrictions apply to 200 American companies that export components to China for advanced semiconductor production and artificial intelligence technologies.
In addition, the Biden administration prohibited imports of products from 29 additional Chinese companies in the Xinjiang Uyghur Autonomous Region on the grounds of “forced labor” shortly before departing office. This justification has resulted in the blacklisting of 107 Chinese companies.
The US is imposing sanctions without credible evidence, which is a serious violation of the fundamental rights of Xinjiang residents and harmful to the legitimate interests of affected companies, as stressed by a representative of the Chinese Ministry of Commerce.
Concrete measures followed China’s warnings that such US actions would result in retaliatory measures, which would be detrimental to American manufacturers. China imposed sanctions on 12 American defense companies in May 2024 in response to US arms sales to Taiwan. The companies that faced sanctions included Lockheed Martin, Raytheon, General Dynamics, and Ordnance and Tactical Systems. Their assets in China, both movable and immovable, were blocked.
A further comprehensive and extensive Chinese countermeasure was implemented on December 5, 2024, when Beijing implemented measures against 13 American defense companies and six senior executives in response to the November arms sale to Taiwan. Additionally, China implemented additional restrictions regarding the export of dual-use products to the United States.
The sanctions imposed on US companies result in the freezing of their assets in China and the prohibition of their trade and cooperation with organizations and individuals there.
For the six senior executives, including Barbara Borgonovi, President of Raytheon’s Naval Weapons Strategic Business Unit, and Gerard Huber, Vice President of the same unit, China has frozen their assets, prohibited their business activities, and denied them visas or entry into China, Hong Kong, and Macau.
Throughout 2024, China’s Foreign Ministry issued numerous countermeasures against US defense companies and senior officials, citing US arms sales to Taiwan. China made these announcements in May, July, September, and October.
The most recent Chinese countermeasures are directed at relatively small companies that manufacture auxiliary military equipment, which is indicative of the increased precision of China’s retaliatory actions.
Additionally, the Ministry of Commerce of China implemented an export restriction on dual-use commodities intended for the United States military in early December. Gallium, germanium, antimony, superhard materials, and graphite-related dual-use items were also subject to stricter export controls in China.
This is a significant threat from China, as it is the world’s primary exporter of these basic materials, and numerous American defense companies heavily rely on Chinese rare earth metals. Although China is cautious about imposing excessive restrictions, the regulation of these exports will impede their development.
If the Trump administration continues to sell armaments to Taiwan or escalates the trade “war,” it is expected that China will intensify its retaliatory measures. Particularly in relation to Taiwan, China continues to wield numerous instruments of influence over the United States.