China’s Economy and How It Matters for US Policy

China’s Economy and How It Matters for US Policy

Author: Cato Institute December 5, 2025 Duration: 1:26:57

How does China’s economy affect US policy? US policymakers have responded to perceived dangers from China by using industrial policy, export controls, and attempting to reduce supply chain vulnerabilities. Some analysts have concluded that China is developing a sizable technological capacity that poses a challenge to the US economy, and potentially constrains US foreign policy. How much leverage has the Chinese economy purchased for policymakers in Beijing? What does the ceasefire in the US-China trade war tell us about the future of US-China competition? Finally, what do these questions about China’s economy tell us about the security threat China potentially poses?

Getting the answers to these questions right is essential for crafting an effective US grand strategy. This policy forum brings together two leading experts on Chinese political economy to discuss what China’s economy really looks like and what the implications are for US grand strategy.


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