US-China: Geoeconomics Tussle

Geo-economics defines itself in two ways: One is the use of the economy to gain geographical or ‎territorial advantages. Second is the use of geographical location to achieve your economic ‎objectives. To understand this core concept in the contemporary world, the best examples to deal ‎with are China and the United States of America. They are keeping in mind that the primary goal of ‎both is to gain power, but the procedures are different. ‎

Talking about China first, we can say that China stands with the first definition of Geoeconomics. It ‎uses its location and geography to enhance its economy to a global level that ultimately defines its ‎geo-economics objectives. The primary goal of China is to become an Economic Giant in the Asian ‎region and then in the entire Globe, or maybe they would aspire to become a superpower later. ‎However, the way they are pursuing their task is quite interesting. China's BRI (Belt Road Initiative) ‎is a more significant step reflecting the use of the economy to promote and defend national ‎interests to gain desired geopolitical results. China has taken some severe measures towards ‎economic and national security to advance innovating and producing technology by prioritizing ‎self-sufficiency. This move was taken to keep China's economy on track and to lessen the military ‎gap between the USA and China.

This is the era of technology, and here these advancements play a ‎crucial role in safeguarding your economic interests and power transitions on a global level. The ‎USA is the most significant player in technological advancements. Still, China, as a rising power, ‎chose their Chinese kind of "innovation imperative" China has made smaller countries their target ‎audience and increasing its consumers day by day. You can take an example of an American ‎iPhone and a Chinese Xiaomi device with the same characteristics. One from a third-world country ‎will opt for Xiaomi. This is why Xiaomi has become the second most selling brand in the world in ‎no time. The United States put a serious critique over China by calling them a "Copy-cat nation, ‎‎"but who cares for this when you get the same brand of American quality with a Chinese label at a ‎low price. This is the best technique used by any nation throughout history. According to the 2025 ‎Made in China plan, China is looking to gain 70% self-sufficiency in high tec markets and aspiring ‎for a dominant global position in the market by 2049. According to their President, self-sufficiency ‎in technologies is mandatory for both economic and security advantages.

China's geo-economics ‎approach is not only restricted to economic and security purposes, but it also covers a coordination ‎aspect between the Chinese state and market actors across the Globe. China is also providing full ‎support to build infrastructures for technological advancements, and then through BRI, they are ‎looking to supply these products to almost half of the world.

China uses multidimensional ‎knowledge and Tecno-based products to achieve its economic objectives and then, through trade ‎routes, wants to achieve its geopolitical objectives. China is a more significant rising threat for the ‎USA because of its successful geo-economics approach so far.‎

The United States of America, on the other hand, has some different approach to pursue its ‎objectives. The USA as a superpower has a primary goal to maintain its global hegemony by hook ‎or crook. For this, they usually use their military or economic power because they have both in ‎surplus. Apart from this, the USA also loves to work diplomatically in a devious way through ‎proxies. First, they use carrots to make their allies in different regions safeguard their interests; ‎otherwise, they go for direct military intervention with complete legitimacy.‎

A recent example is a war on terror against Al Qaeda. Pakistan was the front-line ally of them in ‎that war, and it was all because Al Qaeda broke down their geographical security. The USA entered ‎Afghanistan and portrayed themselves as they were doing it for humanity. In Addition, thousands of ‎Iraqis died in the 2003 invasion, and the whole region was set on fire. The USA has been following ‎for many years is using international financial organizations like IMF and World Bank etc. There ‎are some severe criticisms on World Bank and IMF working as they usually work for the USA's ‎interest. IMF provides loans to different countries with a so-called motto of "helping "them but ‎imposes tight and stiff conditions over them, which they cannot fulfill.‎

The main reason for such a rigid policy is to make their economy handy kept to depend on them ‎forever. Programs also take away the state's sovereignty from its economic affairs. They introduced ‎their policy, which is mandatory to be implemented in the country. They give suggestions like full-‎fledged autonomy to the central banks, privatization of public assets, and amendments in labor ‎laws that provide unchecked powers to pro-capitalist employers.

The recent passing bill of giving ‎autonomy to the State Bank of Pakistan is the best example to understand their working tactics. It ‎will automatically become impossible for a country to recover its economy in these challenging ‎situations, and you will ultimately be in slavery. All of this is done to maintain the Global ‎hegemony of the U.S.-led capitalist bloc. In the past few years, Pakistan has been on the hitlist of ‎the USA just because of its inclination towards China. The USA is building a partnership with India ‎to tackle China in the region and suppress Pakistan to gain its geo-economics advantages. ‎Conclusively, the approach of the USA in pursuing its goal has been ruthless and draconian ‎throughout history, but China so far has proved to be significantly less brutal for all the concerned ‎countries.‎