Abstract
ABSTRACT The election of Donald Trump in 2016 marked the beginning of a new chapter in US–China relations. His administration’s imposition of tariffs and high-level trade negotiations captured the most attention and headlines. But these attempts to coerce China into breaking down key pillars of its ‘state capitalist’ developmental model have been only one, outward-facing element of his administration’s response to China’s growing economic and military strength. This article focuses on three inward-facing policy areas, the politics of which have been shaped by China’s rise and the evolution of the US economy: (1) the governance of inward foreign direct investment; (2) government procurement and local content requirements; and (3) state projects to promote new technologies and domestic productive capabilities. It finds evidence of modest reforms of government regulations and limited expansions in state capacity but that these may prove to be more significant in the long term.
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