US-China cooperative interdependence: Opportunities and obstacles

Key Takeaways - US-China trade has shrunk and fragmented but cannot fully disentangle as both countries still rely on each other in critical supply chains. - In a GATT-inspired but modified approach, the US and China could negotiate a mutually acceptable reduction in their dependence on each other in technology and critical minerals without sabotaging each other. - Strained relations hinder coordinated action on shared goals of reducing emissions and developing clean energy technologies, preparing for future pandemics, and managing aging populations. Growing distrust and strategic rivalry between the US and China have shifted their relationship from mutually beneficial cooperation to costly conflict. The papers in this PIIE Briefing explore ways the two countries can pursue a structured, negotiated approach to economic disengagement while still collaborating on shared goals to address climate change, public health, and demographic challenges. Failure to find ways to cooperate--even while competing--will continue to hurt both economies and the rest of the world and also slow progress on tackling urgent global problems.