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The US is in its strongest position in decades to compete with China. The United States is experiencing its fastest economic growth in 40 years and a 50-year-low unemployment rate of 3.4% and is currently on track to outperform China.
Recent tensions with China, such as the spy balloon incident, have brought US-China relations to the forefront. President Biden addressed these issues in his State of the Union, stating that his administration is seeking economic competition with China while avoiding conflict. Biden emphasized the priorities of boosting domestic manufacturing and bringing business back to the US instead of relying on international partners like China.
China’s strict COVID-19 lockdowns are decelerating economic growth, projected to only grow 2% last year. In contrast, the US economy is seeing a stronger economic growth of 2.8%. China’s economic expansion is predicted to be the weakest since 1976 and fall behind the US. Factors such as domestic job creation, and consumer spending are driving this growth, despite concerns over inflation.
In the past two years, The US economy has experienced significant improvements with 517,000 jobs added in January alone. A total of 12 million new jobs have been created, including 800,000 domestic manufacturing jobs, and over 10 million Americans applying to create their own businesses. Today, the US has the world’s largest economy with a 2021 GDP of $23 trillion, $5 trillion more than China.