How the U.S. and China are economically linked
China is one of the United States' largest trading partners. Total goods trade between the two countries reached about $582 billion in 2023, according to the U.S. Census Bureau. China is the leading source of U.S. imports in categories such as consumer electronics, machinery, and certain pharmaceutical ingredients. China also holds roughly $775 billion in U.S. Treasury securities as of 2024, making it one of the largest foreign holders of U.S. government debt.
What tools the U.S. uses to restrict trade
The federal government has several mechanisms to limit trade on national-security grounds. Tariffs raise the cost of imported goods. Export controls, administered by the Commerce Department's Bureau of Industry and Security, restrict what U.S. companies can sell abroad. Investment screening through the Committee on Foreign Investment in the United States (CFIUS) reviews foreign purchases of U.S. firms. Sanctions and entity-list designations can block specific companies from doing business with American suppliers.
Recent policy actions
In October 2022, the Commerce Department imposed sweeping export controls limiting China's access to advanced semiconductors and chipmaking equipment, with additional rules added in 2023 and 2024. The same year, Congress passed the CHIPS and Science Act, which authorized roughly $52 billion in subsidies to expand domestic semiconductor manufacturing and reduce reliance on foreign production. Tariffs imposed during the Trump administration on a wide range of Chinese goods were largely maintained and, in some sectors such as electric vehicles, expanded under the Biden administration.
The case for restrictions
Supporters argue that limits on trade with China are necessary to protect critical technologies, defense supply chains, and intellectual property. They point to concerns about military applications of advanced chips and artificial intelligence, dependence on Chinese-made components in pharmaceuticals and electronics, and reports of intellectual-property theft. Proponents also contend that targeted industrial policy, such as CHIPS Act subsidies, can rebuild domestic capacity in sectors deemed strategically important.
The case against broad restrictions
Critics warn that restrictions can raise consumer prices, disrupt supply chains, and invite retaliation against U.S. exporters, particularly in agriculture and aerospace. They note that many U.S. companies rely on the Chinese market for sales and on Chinese suppliers for inputs. Some economists argue that subsidies and tariffs distort markets and may not deliver the promised manufacturing gains. Others caution that decoupling could accelerate Beijing's push to develop its own alternatives in semiconductors and other sectors.
Areas of bipartisan agreement and disagreement
There is broad bipartisan support in Washington for some level of restriction on advanced technologies with military applications. Disagreements tend to focus on scope: how broadly to define 'national security,' whether to apply tariffs to consumer goods, how aggressively to screen outbound U.S. investment in China, and how much taxpayer money to spend on domestic industrial policy. Allies in Europe and Asia have at times coordinated with U.S. controls and at times pushed back, adding a diplomatic dimension to the debate.
Questions voters can weigh
When considering this issue, voters may weigh how to balance security risks against economic costs, which sectors warrant special protection, how much to spend on domestic production, and how to respond if China retaliates. The answers shape decisions about tariffs, export controls, subsidies, and broader U.S. strategy toward its largest economic rival.