ABSTRACT. In the contemporary era, the strategic rivalry between the United States and China is increasingly manifesting itself in the economic domain, leading to concerns about potential economic warfare. This paper delves into the concept of economic war within the context of the U.S.‒China strategic competition, examining the various tactics employed, the implications for global trade and investment, and the potential paths forward. Economic warfare refers to the strategic use of economic measures, such as trade barriers, sanctions, subsidies, and other policy tools, to gain an advantage over a competitor. The U.S. and China, being the world’s two largest economies, have engaged in a range of economic actions aimed at weakening the other’s economic power while strengthening their own. The U.S. has employed tactics such as tariffs, blacklisting Chinese technology companies, and initiating a trade war, citing concerns over unfair Chinese trade practices. China, on the other hand, has pursued strategies like subsidizing domestic industries and promoting indigenous innovation. This economic competition has far-reaching implications for global trade and investment flows, as well as for multinational corporations operating in both markets. Additionally, it raises concerns about potential unintended consequences and the risk of escalation. The paper explores the nuances of this economic rivalry, highlighting the complexities and interdependencies between the two economies. It concludes by offering insights into potential paths forward, emphasizing the importance of dialogue, cooperation, and finding a balance between competition and collaboration in the pursuit of mutual economic interests.
JEL codes: D53; E22; E32; E44; G01; G41

Keywords: economic warfare; U.S.‒China strategic competition; trade barriers; economic interdependence; global trade and investment

How to cite: Peters, M. A. (2024). “Economic War in the Era of ‘Strategic Competition’: Science, Technology and Trade,” Journal of Self-Governance and Management Economics 12(2): 9–26. doi: 10.22381/jsme12220241.

Received 12 January 2024 • Received in revised form 1 May 2024
Accepted 4 May 2024 • Available online 25 May 2024