Geopolitical Economy Report Why Washington and Silicon Valley hate (and fear) China
Feb 22, 2026
A deep dive into the new Cold War framing of US–China rivalry, focusing on trade, tech, and a race for critical minerals. Discussion of US plans to build alternative supply chains like Pax Silica and Project Vault. Exploration of Silicon Valley and billionaire influence on government policy. Examination of India’s role and wider global non-alignment pressures.
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Bipartisan Second Cold War Against China
- The U.S. is waging a bipartisan Second Cold War focused on trade and technology targeting China.
- Trump started the trade war, Biden largely continued it, and a 2025 pause was only temporary with tariffs to resume in 2027.
China Controls Critical Mineral Processing
- China dominates processing of critical minerals and rare earths, controlling about 90% of global processing for some materials.
- That dominance created leverage when China restricted exports in response to U.S. tech controls during the trade war.
Export Controls Are Central To The Tech War
- The U.S. is pursuing a tech war to slow China's innovation by restricting exports of advanced chips and gear.
- Export controls targeted leading-edge semiconductors to try to prevent China from catching up in AI.