Economic Interdependence between China and the United States: Supply Chain (2002-2023)

China and the United States, the two economic superpowers accounting for nearly 43% of the global economy, are engaged in a mutually interdependent economic relationship, despite their distinct levels of development and positions within the global supply chain. This interconnectedness has fostered numerous opportunities for the international economy and contributed to the dynamism of the global market. Employing the theory of comparative advantage, this paper examines the nature of this relationship and the positioning of each country within the supply chain. Findings indicate that the mutual economic dependence between these two nations has been shaped by their comparative advantages and has intensified over the past two decades, driven by China's rapid economic growth and increased joint ventures. China is primarily positioned at the beginning of the supply chain, focusing on the production of consumer goods and industrial products, while the United States has solidified its place at the end of the chain, emphasizing design, research and development, and advanced technologies.