We have moved into an era of global competition tempered by the need to co-operate and the fear of conflict. The main protagonists are the US and its allies on the one hand, and China and Russia on the other. Yet the rest of the world also matters. It contains two-thirds of the global population and a number of rising powers, notably India, now the world’s most populous country.
Nevertheless, relations between the US and China are clearly central. Fortunately, the administration has been trying to reduce the friction, most recently with visits to Beijing by secretary of state, Antony Blinken, and Treasury secretary, Janet Yellen.
Yellen’s objective was, she stated, “to establish and deepen relationships” with the new economic leadership team in Beijing. She stressed that this was part of an effort to stabilise the relationship, reduce the risk of misunderstandings and consider areas of co-operation. She added that “There is an important distinction between decoupling, on the one hand, and on the other hand, diversifying critical supply chains or taking targeted national security actions. We know that a decoupling of the world’s two largest economies would be disastrous for both countries and destabilising for the world. And it would be virtually impossible to undertake.”