Trade not key – U.S-and China are durably integrated

Second, although U.S.-China bilateral trade and investment ties have stagnated, the two countries are still embedded in an extensive web of complex interdependence across all aspects of their economies and broader societies, which extends to countries around the world. Interconnectivity has created certain vulnerabilities, such as overdependence for critical goods and the potential transfer of dual-use technologies, but it also has created extensive economic and national security benefits that raise the costs of conflict and the value of continued interaction to both sides. Understandably, neither side is keen to abandon such ties. The fact that other countries are deeply connected to the United States and China further raises the costs to Washington and Beijing from taking precipitous actions. Interdependence is no panacea, but it is a structural feature shaping the choices of all parties.