David Rennie, a renowned British journalist and Geopolitics Editor at The Economist, delivered an insightful talk at the University of Wisconsin-Madison on Thursday, emphasizing the critical need for the United States and China to remain economic allies despite growing ideological rifts—particularly under former President Donald Trump’s renewed tariff policies.
Hosted by the Center for East Asian Studies (CEAS), Rennie drew from his deep experience as the Beijing bureau chief (2018–2024), during which he launched the Chaguan column, to paint a vivid picture of the evolving U.S.-China relationship.
A History of Complex Economic Ties
Rennie reflected on the long, intricate ties between the two global superpowers, saying:
“For more than a century, America’s leaders have said — and I think they often meant it — that they welcomed China’s rise. But that welcome of China’s rise had an asterisk. It was a conditional welcome.”
He explained that historically, the U.S. supported China’s development—but with the hope that it would evolve into a more liberal, Western-style economy and society. This vision became especially prominent after Deng Xiaoping opened up China’s markets in the late 20th century.
“You saw not just America, but all Western powers — the Japanese, Europeans — determined, eager to help China rise,” Rennie noted.
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The Turning Point: Trump’s First Presidency
The relationship began to shift dramatically in 2016, Rennie said, with the election of Donald Trump and his focus on economic nationalism.
“There’s this backlash against globalization, and it’s grown because we’ve discovered that in politics, the concentrated losses of globalization have far more weight than the diffuse benefits of people getting cheap stuff at Walmart,” Rennie explained.
The Trump administration’s growing suspicion of China—coupled with tariffs, trade wars, and ideological distrust—highlighted a new era in U.S.-China policy.
Technology and Trust in a New Global Economy
Rennie also underscored the importance of technology in the geopolitical landscape. As China pushes to dominate emerging tech sectors, the need for mutual trust is becoming more essential—and more elusive.
“The most advanced globalization in the 21st century involves a lifetime commitment of trust between a company and a consumer,” he said. “China wants to dominate those sectors just as ideological trust is falling off a cliff, and that’s a real problem.”
Trump’s Second Term: Uncertainty Looms
In light of Trump’s recent “Liberation Day” tariff announcements and his rhetoric about China, Rennie voiced concern about the future of the two nations’ relationship.
“[Trump’s] defenders in Washington will tell you to look at the policies, not what he says,” Rennie observed. “He thinks that foreigners should pay rent to access the American economy, and China wasn’t paying enough rent.”
With Trump signaling a return to protectionist policies, Rennie warned that the direction of U.S.-China diplomacy remains unclear.
“We don’t know what Donald Trump’s plan is — I think we genuinely don’t know. But China has a plan, and China plans to win,” he concluded.
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Final Thoughts
David Rennie’s address served as both a warning and a call to action: while ideological divides are growing, economic interdependence between China and the U.S. remains vital. The path forward, however, will depend heavily on political will, global cooperation, and a renewed commitment to strategic trust.David Rennie: Why the U.S. and China Must Stay Economic Allies Amid Rising Tensions
