The escalating rivalry between America and China is usually attributed to their clash of interests. It is not difficult to find areas where the interests of these two countries collide. They are at loggerheads, for example, over military support for Taiwan, freedom of navigation in the South China Sea, trade and technology policies, in 5G and semiconductor manufacturing.
But these conflicts mask a deeper cause of Sino-American rivalry: their quest for status. For people, status speaks to the need for self-esteem. In the modern world, this is often projected onto states. People feel good about themselves when their states do well and become powerful or gain the respect of other states and peoples. China and America both claim special status in the world and have encouraged their citizens to define their identities, in part, in relation to it. People routinely make compromises when their interests clash, but usually dig in their heels when conflict arises over their identities.
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When Ken Wilcox, a former CEO of Silicon Valley Bank, moved to Shanghai in 2011, he was optimistic and eager to start up the bank's new joint venture in China. A decade later, however, he is extremely cynical about U.S. business interests in China. While analysts will, rightly, be debating SVB's missteps in the U.S. for the foreseeable future, Wilcox insists the bank's challenges in China should not be overlooked.
The former secretary of state talks about how the Trump administration changed U.S.-China relations; why he accused Beijing of genocide in Xinjiang; and why U.S. politicians should visit Taiwan.