Ultimately, what has really changed the equilibrium was China quite rapidly moving up the value chain (faster than most expected) and starting to develop higher-value tech/IP/brand-driven products that were competing with U.S. brands and MNCs.
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Within this framework, 🇺🇸 has responded rather predictably by effectively restricting or banning imports of everything ranging from Tiktok to Huawei smartphones to BYD cars.
While various reasons are given (reciprocity, blanket "national security"), economic competition is really at the heart of it.
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Understandably, 🇺🇸 did not want to give up the economic "high ground" that powered a comfortable life for the vast majority of citizens.
Also understandably, 🇨🇳 wanted to bring such a life to its billion-plus citizens.
While various reasons are given (reciprocity, blanket "national security"), economic competition is really at the heart of it.
Its blue-collar labor pool is shrinking and becoming more of a precious commodity and wages rising, commensurately.
Levelheaded recognition of this reality (i.e. not freaking out about it) is key to managing a peaceful transition.
The world will need to find a new equilibrium point — and new (or modified) organizational structures.