Chess game symbolizing US-China trade battle

Trade Wars: Is China Winning the Battle for Global Economic Influence?

Kai Mendoza in Business & Economy August 2025 • 4 min read.

"A deep dive into the shifting dynamics of global trade agreements and whether China's approach is reshaping the future of international economics."

For decades, the United States has been a dominant force in shaping global trade. Agreements like the Trans-Pacific Partnership (TPP) were designed to set the rules for the 21st-century global economy. However, as political tides shift, the landscape of international trade is undergoing a dramatic transformation, leading many to question whether the U.S. will remain the leading influence.

One of the key challengers to U.S. dominance is China. As the world's second-largest economy, China has been strategically expanding its influence through initiatives like the Regional Comprehensive Economic Partnership (RCEP) and the One Belt, One Road initiative. These ambitious projects aim to create new trade routes, foster economic integration, and establish China as a central player in global commerce.

This article examines the power struggle between the U.S. and China in the arena of international trade, assessing which country is better positioned to shape the future of the global economy. From trade agreements to technological innovation, we'll explore the key factors that will determine the winner of this high-stakes battle.

The Rise of RCEP and China's Trade Strategy

Chess game symbolizing US-China trade battle

While the U.S. focused on agreements like the TPP, China quietly championed RCEP, a trade pact that includes 15 countries in the Asia-Pacific region. RCEP aims to reduce tariffs, streamline customs procedures, and promote trade within the bloc. With the U.S. withdrawal from the TPP, RCEP has become the world's largest free trade agreement, encompassing nearly a third of the global population and GDP.

China's strategy goes beyond just trade agreements. The One Belt, One Road initiative is a massive infrastructure project that aims to connect Asia, Africa, and Europe through a network of railways, ports, and highways. This ambitious project could create new markets for Chinese goods, boost economic growth in participating countries, and strengthen China's geopolitical influence.

RCEP's potential impact: Could reshape global trade flows.
Infrastructure focus: Connects diverse markets.
Geopolitical shift: Positions China as a key influencer.
Economic growth: Boosts growth in participating nations.

These initiatives have placed China at the forefront of global trade, offering a compelling alternative to the U.S.-led model. With its focus on infrastructure development and regional integration, China is seeking to create a more inclusive and interconnected global economy.

The Future of Global Trade

The battle for global economic influence is far from over. As China's economic power continues to grow, the U.S. will face increasing challenges to its dominance in the arena of international trade. Whether the U.S. can adapt to this changing landscape and reclaim its position as a leader in global commerce remains to be seen. Ultimately, the future of global trade will depend on the ability of both countries to forge a more inclusive and sustainable economic order.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1007/978-981-13-3038-4_2, Alternate LINK

Title: The Trans-Pacific Partnership Agreement And The Regional Comprehensive Economic Partnership: A Battleground For Competing Hegemons?

Journal: Free Trade Agreements

Publisher: Springer Singapore

Authors: Jane Kelsey

Published: 2018-10-30

Everything You Need To Know

What is the Regional Comprehensive Economic Partnership (RCEP), and how does it impact global trade?

The Regional Comprehensive Economic Partnership, or RCEP, is a trade agreement among 15 countries in the Asia-Pacific region. It aims to lower tariffs and simplify customs, promoting trade within the member countries. RCEP's scale is vast, covering nearly a third of the world's population and GDP, which is a strong contrast to the Trans-Pacific Partnership. While it focuses on regional integration, it does not address non-trade issues such as labor standards and environmental protection, which are part of more comprehensive trade agreements.

Can you explain the One Belt, One Road initiative and its potential consequences for participating countries?

The One Belt, One Road initiative is an ambitious infrastructure project by China that seeks to connect Asia, Africa, and Europe through a network of railways, ports, and highways. This initiative aims to create new markets for Chinese goods, boost economic growth in participating countries by improving connectivity and trade efficiency, and strengthen China's geopolitical influence by fostering economic dependence and creating long-term relationships. However, it has faced criticism regarding debt sustainability and potential strategic implications for participating nations.

How is China actively challenging the United States for global economic influence?

China is challenging the United States' dominance through initiatives like the Regional Comprehensive Economic Partnership and the One Belt, One Road initiative. These projects aim to create new trade routes, foster economic integration, and establish China as a central player in global commerce. China's approach emphasizes infrastructure development and regional integration, providing an alternative to the U.S.-led model that has historically shaped global trade. This strategy positions China as a key influencer in the evolving landscape of international economics.

Given the shift in global trade dynamics, what must the United States do to reclaim its position as a leader in global commerce?

The United States previously focused on establishing agreements like the Trans-Pacific Partnership to set the rules for the 21st-century global economy. However, the United States' withdrawal from such agreements has led to questions about its future role. To regain its leadership, the U.S. needs to adapt to the changing landscape by forging more inclusive and sustainable economic policies and engaging in strategic partnerships. Innovation and technological advancement remain key factors, but a shift towards greater collaboration and addressing global concerns could help the U.S. reclaim its position.

What was the intended purpose of the Trans-Pacific Partnership (TPP), and why is it significant in the context of China's rise?

The Trans-Pacific Partnership (TPP) was an agreement designed to set the rules for the 21st-century global economy and counter China's growing influence. It included several countries in the Asia-Pacific region, but notably excluded China. Its goals included reducing tariffs and promoting trade liberalization among member countries, but also set standards for labor, environmental protection, and intellectual property. The withdrawal of the United States from the TPP significantly altered the landscape, paving the way for China's Regional Comprehensive Economic Partnership to become the world's largest free trade agreement.