US-China rivalry intensifies

Diplomatic ties may improve under Biden, but both governments will compete to lead the green energy revolution

In early 2020, Chinese decision-makers were preparing to wrap up the 13th five-year economic plan and draft the next one. Beijing had hoped to finalise a number of domestic development goals and thought that the pending ‘phase one’ trade agreement with the US—expected to see China purchase an additional $52.4bn of energy exports—would give the government the diplomatic breathing space to focus on its domestic agenda. China had little pressure to issue ambitious new pledges. But 2020 did not pan out as expected. Efforts to control the spread of Covid-19 took a toll on China’s economy, leading to the first contraction in Chinese GDP for over three decades. The country’s external environment s