Report: A new economic confrontation between Washington and Beijing threatens the post-Iran war period

Beijing —
Attention is turning to the anticipated summit between US President Donald Trump and his Chinese counterpart Xi Jinping in Beijing, amid expectations that the meeting will carry public messages about stability and cooperation, while behind the scenes indicators of a broader economic confrontation between the two powers are escalating.

Reports indicate that the United States and China are working on identifying each other's weaknesses and developing economic pressure tools that could be used if understandings between the two sides fail, especially in the areas of trade, technology, and supply chains.

In recent weeks, Beijing has escalated its countermeasures against US sanctions by expanding its legal powers to pursue companies that cooperate with Western restrictions or move supply chains away from China.

China has also established new rules allowing authorities to investigate foreign companies, interrogate their employees, and prevent some managers from leaving the country if they are considered to be assisting in implementing measures targeting the Chinese economy.

These steps come as part of a Chinese shift from symbolic responses to a more aggressive policy targeting companies that comply with Washington's pressures in areas such as technology, rare materials, and trade with sanctioned countries.

In return, the United States continues to use sanctions, tariffs, and export restrictions to limit China's rise in strategic sectors, especially artificial intelligence, semiconductors, and advanced technologies.

Tensions increased this month after Washington imposed sanctions on Chinese refineries due to dealings related to Iran, while Beijing responded by urging companies not to comply with these sanctions and considering them a violation of Chinese companies' rights.

The Taiwan issue adds a security dimension to the economic confrontation, as members of the US Congress push to proceed with a delayed $14 billion arms deal, asserting that support for the island should not become a bargaining chip at the summit with China.

In contrast, Beijing warned that it will take all necessary measures to defend its sovereignty and territorial integrity, indicating its rejection of any US steps that enhance Taiwan's military capabilities.

The mutual escalation reflects the transition of the US-China relationship to a more dangerous phase, where disagreements are no longer limited to trade tariffs but have extended to global supply chains, technology, and regional security.

Observers believe that the upcoming summit may determine whether the two sides can manage their competition, or if the post-Iran war phase will witness a new front of economic conflict that could affect companies, markets, and countries linked to global trade chains.