China and the United States are the world’s two largest economies. Their trade relations and economic policies significantly impact markets and economic stability around the world.

Collaboration and competition between the two countries drive technological advancements and innovation.

Jeffrey Sachs is the Director of the Center for Sustainable Development at Columbia University and President of the UN Sustainable Development Solutions Network.

“I think for any major economy, whether it’s China, the United States, European Union, or others, the future is to move to green and digital. We have an environmental crisis, and we have remarkable new digital technologies. We’re going to have to move to zero urban energy systems, to electric vehicles, to hydrogen economy, and we’re going to be using digital technologies for every step of the way,” Sachs said.

Bilateral trade between China and the United States amounts to hundreds of billions of dollars annually. Chinese companies have been increasingly investing in the U.S., acquiring American businesses and establishing operations, which enhances economic ties. China is deeply integrated into the global supply chain, with many U.S. companies relying on Chinese components and materials for their products

Yukon Huang is a Senior Fellow in the Asia Program at the Carnegie Endowment. He’s the former World Bank China country director.

“They’re going to be producing advanced chips here in the U.S. based upon processes and techniques that exist in Taiwan. But the Taiwan cost structure, labor-wise, is about one-third as cheap. We don’t have the skills of the people in the engineering,” Huang said. “Then you’re going to have to put up a barrier saying, American companies, you can’t buy these chips from Taiwan anymore. You have to buy it locally, and now you have to pay twice as high. This is where it all breaks down.”

China’s EV Revolution 

China’s efforts to reduce greenhouse gas emissions are multi-pronged. They include a commitment to wind and solar, as well as electric vehicle production. China is responsible for more than half of all new EV sales around the world. Host Mike Walter heads to China to see first-hand some of the latest EV offerings.