The US relationship with China needs to be understood in the context of the capitalist world system. Capital accumulation in the core states, often glossed as the “Global North”, depends on cheap labour and cheap resources from the periphery and semi-periphery, the so-called “Global South”.
This arrangement is crucial to ensuring high profits for the multinational firms that dominate global supply chains. The systematic price disparity between the core and periphery also enables the core to achieve a large net-appropriation of value from the periphery through unequal exchange in international trade.
The second element that’s driving US hostility towards China is technology. Beijing has used industrial policy to prioritise technological development in strategic sectors over the past decade, and has achieved remarkable progress.
This poses a problem for the core states because one of the main pillars of the imperial arrangement is that they need to maintain a monopoly over necessary technologies like capital goods, medicines, computers, aircraft and so on. This forces the “Global South” into a position of dependency, so they are forced to export large quantities of their cheapened resources in order to obtain these necessary technologies. This is what sustains the core’s net-appropriation through unequal exchange.
China’s technological development is now breaking Western monopolies, and may give other developing countries alternative suppliers for necessary goods at more affordable prices. This poses a fundamental challenge to the imperial arrangement and unequal exchange.
The real reason for Western warmongering is because China is achieving sovereign development and this is undermining the imperial arrangement on which Western capital accumulation depends. The West will not let global economic power slip from its hands so easily.