How America Funded China’s Rise

This article discusses how American trade, investment, and technology have contributed to China's growth, which now poses a threat to the United States' power and security. The author critiques the notion that free trade benefits all parties equally, arguing that America's trade with China has primarily strengthened China at the expense of the U. S.

1. Trade and Economic Asymmetry: Proponents of free trade argue that it provides cheap goods to Americans and benefits the global economy. However, the author claims that China has benefited disproportionately from trade, with its economy growing significantly faster than America's since joining the World Trade Organization in 2001.

2. Political Implications: The author posits that as China's economy grows, America's relative power diminishes. This creates a political dilemma: are inexpensive products worth sacrificing U. S. political dominance?

3. Investment in China: The article notes that American investment in China's economy, estimated at $2. 7 trillion in foreign direct investment (FDI), is often routed through financial hubs, making it difficult to assess how much is directly from the U. S. The author estimates that actual American investments could be around $972 billion.

4. Trade Deficits: The U. S. has incurred a $6 trillion trade deficit with China since 2001, allowing China to utilize these profits for further economic growth, often through borrowing.

5. Technology Theft: The author highlights the significant issue of intellectual property theft by China, estimating the value of this theft to be between $225 to $600 billion per year. This, combined with corporate partnerships and investments in U. S. companies by Chinese firms, has allowed China to accelerate its technological development without proper compensation.

6. Consequences of Technology Transfer: American companies are often forced to share technology with Chinese partners to operate in China, leading to a significant transfer of American industrial knowledge. This has enabled China to leapfrog its development, reducing a historical technological gap.

The author concludes by stating that America's economic policies have inadvertently funded China's rise to superpower status, which has weakened the U. S. over time. The rise of China as a major global power presents a challenge to America's dominance, and the article warns of the risks involved in continuing current trade practices without reassessing their implications. 

https://amgreatness.com/2025/04/28/how-america-funded-chinas-rise/