Tensions Rise between the US and China after Chinese Balloon was Shot Down

On Monday, China condemned the United States, accusing the US of indiscriminate use of force and violating international laws in shooting down the suspected Chinese spy balloon.   

“What the US has done has dealt a serious blow and damaged the efforts and advances in stabilizing China-US,” said Xie Feng, the Vice-minister of foreign affairs. 

The US shot down the balloon off the Carolina coast after it traversed sensitive military sites across North America. China insisted the flyover was an accident involving a civilian aircraft. 

Monday was the day that Secretary of State Antony Blinken was going to be in Beijing, meeting with President Xi Jinping to ease the rising tensions between the world’s two largest economies. Instead, Blinken abruptly canceled his visit, stating: 

"In light of China's unacceptable action, I am postponing my planned travel this weekend in China," adding that the State Department concluded, "conditions were not conducive for a constructive visit at this time." 

Stress between the US and China has been growing for some time now and growing with China’s claims on Taiwan. Moreover, China has been increasing its aggressiveness in the South and East China Seas this year, putting US allies like Japan, South Korea, the Philippines, Thailand, New Zealand, and Australia on edge. 

Over the last five years, China-U.S. relations have entered a new and worsening phase of confrontation, conflict, and competition, said Da Wei, director of the Center for International Security and Strategy at Beijing’s Tsinghua University. He continued by calling the current period a “new kind of Cold War. “It’s very different from the Cold War between the U.S. and the Soviet Union, but if we define cold war as the two biggest countries in the world being locked in fierce confrontations and conflicts in a way that doesn’t involve military and wars ... we are rapidly moving in that direction.”  

The world is watching and worrying that conflict will worsen many countries' current economic crises. Nevertheless, Blinken and senior Chinese officials seem to still plan on attending the Munich Security Conference in mid-February and a meeting of the Group of 20 foreign ministers in India in early March which could provide venues for renewed engagement. 

Impact on the Technology Industry 

Last year the technology industry took notice of the increased tension between the US and China and began slowly decoupling itself from China. This year started with the United States, Japan, and the Netherlands agreeing to tighten China’s access to specific technology and chip manufacturing equipment to limit their semiconductor development capabilities. Additionally, the US is considering entirely cutting Huawei from all US Suppliers and expanding the UFLPA bans.  

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