Despite US efforts to reduce reliance on China and decouple from it, the process will not be easy, given China’s enormous economic influence. Even with countries such as Vietnam trying to take China’s place as the “world’s factory”, their capacity is limited. However, this does not mean that China’s position is assured, as other countries are noticing China’s penchant for using its economic might as a bargaining chip.

Chinese academic Zhu Ying says the US is reviving its rhetoric of ideological crusades against China that harks back to the time of the Truman doctrine. Such tactics will only get worse with post-pandemic tensions and greater strategic competition between the two countries.

Even as China says that it is not trying to change the world order, its actions can be interpreted as suggesting otherwise. Chinese economics professor Zhu Ying traces how China has been influencing the world order, if not changing it.

Zhu Ying states that it is impossible to understand the new Cold War between China and the US without understanding the clash of ideologies that marked the first Cold War and which clouds the current state of relations between China and the US. If we are lucky, like the first Cold War, the new Cold War will not tip over into a hot war. However, accidental mishaps wrought by zealous ideologues cannot be ruled out.

“The new Cold War” is becoming a catchphrase for the state of relations between China and the US. But the China of today and the web of connections it shares with the US is very different from the former Soviet Union. Is calling the conflict a clash of ideologies oversimplifying the issue? Even further, is it in the US’s interest to do so to corral support for its actions against China at home and abroad? Zhu Ying examines the issue.

In the current political climate, the possibility of a phase two trade deal between China and the US is practically a non-starter. So be it, says Zhu Ying. China has shown that it wants to walk its own path, and will probably do so even more resolutely as it bristles at criticism of “socialism with Chinese characteristics”.

The West has been setting up new rules and regulations targeting China's economic system, which they regard as a non-market economy that could undermine the proper functioning of international trade. These rules and regulations are formulated through international organisations, multilateral and bilateral trade agreements, and even as unilateral domestic laws. However, Chinese academic Zhu Ying says China is not buckling under pressure as its market economy is a mere means for China’s economic development, and not the end goal of its economic system.

Economics professor Zhu Ying notes that German Chancellor Angela Merkel holds a pragmatic approach towards China — specifically, economic interests come first. She has held on to that maxim despite questions from within and outside the government as to whether Germany should be tougher on China on matters that seem to run counter to their value system. In the face of mounting pressures in the wake of Covid-19 and developments in Hong Kong, can Merkel stay the course of balancing economic interests with values?

In some ways, the UK has been independent of the US in making decisions when it comes to China, such as in joining the AIIB, and initially deciding to allow the use of Huawei’s equipment for its 5G network. However, the coronavirus and the new national security law for Hong Kong has pushed Britain to be more aligned with the US in opposing China. Chinese academic Zhu Ying notes that Britain’s new stance would embolden others to follow suit.