The Lawfare Podcast Lawfare Daily: Steve Brooks and Ben Vagle on U.S.-China Economic Competition
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Aug 13, 2025 Steve Brooks, a Government Professor at Dartmouth and co-author of 'Command of Commerce,' joins Ben Vagle, a JD and PhD candidate at Stanford, to discuss U.S.-China economic competition. They challenge the belief that China holds significant economic power, arguing that a decoupling would hurt China more. Brooks and Vagle highlight the importance of U.S. alliances and explore strategies for reducing manufacturing dependence on China. They also consider the long-term consequences of potential economic separation for both nations.
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U.S. Still Holds Large Economic Lead
- The U.S. retains a substantial economic power lead over China that many metrics understate.
- Brooks and Vagle estimate allied multilateral cutoffs would hurt China 5–11x more than the U.S.
Profits, Not Just GDP, Measure Power
- Territorial GDP misses extraterritorial power because multinational firms concentrate profits across borders.
- U.S. firms generate ~38% of global profits while Chinese firms generate ~16%, skewing power assessments.
U.S. Dominance In High-Tech Profits
- The U.S. dominates global high-technology profits, concentrating strategic advantage in tech sectors.
- U.S. high-tech firms generate ~56% of global high-tech profits while Chinese firms generate ~6%.
