America’s economic dominance is slipping, and China’s rise isn’t accidental—it’s the result of decades of Western missteps and free trade fantasies gone unchecked.
At a Glance
- China leveraged U.S. trade policy to dominate global markets
- U.S. responses to IP theft and tech espionage have largely failedBeijing controls over 70% of rare earth mineral processing critical to U.S. industries
- Experts warn the U.S. lacks strategic resolve in countering China’s economic aggression
- Diversification and IP enforcement seen as key future priorities
How China Exploited U.S. Policy
The United States didn’t lose to China by surprise—it lost by design. As outlined in a Fox Business investigation, Beijing methodically used Washington’s free trade ethos to build a global manufacturing juggernaut. Trade deals and market access once hailed as diplomatic triumphs became the very levers China pulled to undermine American innovation, edge out competitors, and dominate supply chains.
Watch a report: How China Outmaneuvered the U.S.
Despite bipartisan recognition of China’s systemic intellectual property theft, the U.S. has rarely enforced meaningful consequences. Gordon Chang put it bluntly: “We knew what was going on. We’ve known it for decades, and we never really took effective action to stop it.”
Strategic Materials and Economic Leverage
China now controls the refining of over 70% of the world’s rare earth minerals, used in everything from smartphones to missile systems. This single point of dependency gives Beijing immense leverage—one it’s not shy about using. The U.S., meanwhile, struggles to rebuild domestic capabilities that were hollowed out by offshoring and deregulation.
In the face of China’s economic assertiveness, American officials are scrambling to play catch-up. The Biden administration has proposed reshoring supply chains, while Trump-era tariffs remain a political flashpoint. Yet few strategies so far match the urgency of the threat.
What the U.S. Must Do Next
The United States now stands at an inflection point. Policymakers must go beyond rhetoric and implement comprehensive safeguards—starting with aggressive IP enforcement, stricter investment screening, and rapid diversification of critical mineral sourcing.
As George H.W. Bush once warned, “No nation on Earth has discovered a way to import the world’s goods and services while stopping foreign ideas at the border.” Today, that insight stings. The U.S. allowed China to learn from, steal, and then outbuild it.
Economic influence, once assumed to be America’s unchallenged domain, is now a contested arena. Washington’s next moves will determine whether the U.S. can claw back its competitive edge—or continue to lose on rules it helped write.
