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The Cost of American Prosperity  – Michael Sobolik

On December 16, 2024, then President-elect Donald Trump sounded an optimistic note on America’s future with the People’s Republic of China (PRC): “China and the United States can together solve all of the world’s problems.” Four months later, according to reporting from the Wall Street Journal, the president met with Treasury Secretary Scott Bessent to discuss ways to “isolate the Chinese economy.” The key intervening event was, of course, the trade war that Trump launched on April 2.

These events are a Rorschach test. The president’s most ardent supporters perceive a coherent plan to strategically decouple from the PRC at a global scale, and on trade and tech, they have a point. The administration has prohibited companies like Nvidia from selling modified semiconductors to China. Trump has closed loopholes that allowed fast-fashion giants Temu and Shein to evade tariffs and import slave labor-produced goods into America. Most recently, the president approved sweeping export controls on Huawei-produced chips.

But those supporters miss something more fundamental happening in America’s relationship with the Chinese Communist Party (CCP). In the domains that arguably matter most to the party—ideology and information—the United States is unilaterally surrendering. Even worse, Washington is effectively doing the CCP’s work for it. At its core, though, this problem is not one of Trump or former President Joe Biden, nor one of any political party. America is stuck in self-defeating strategic behavior—rooted in a deep-seated preexisting condition: a refusal to believe in trade-offs.

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