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Engagement on the Defensive: From the Mismatched Grand Bargain to the Emerging US–China Rivalry

ABSTRACT Facing powerful challenges from both China and the US, the long-standing engagement policy is on the defensive. Focusing on advancing American economic and security interests rather than its ideals and prioritizing reciprocity above economic cooperation, the Trump administration has declared China a strategic competitor and escalated a trade war into a multi-front conflict. However, profound interdependence continues underpinning the bilateral relationship. Neither the US nor China can afford to disengage from the other. The two countries are not natural partners but not inevitable enemies either. Competition does not mean confrontation, much less war. Engagement remains the foundation for healthy competition.