The Sticking Points Between the U.S. and China in 2025

ensions between the United States and China are once again rising. Both countries are major world powers, and what they do affects the global economy, technology, and even global security. While they have talked about cooperation in the past, several big issues continue to stand in the way. Here are the main “sticking points” causing new friction in 2025 — explained in simple terms.

1. Export Controls and Critical Minerals

China recently announced new export limits on certain materials that are used in making high-tech products. These include artificial diamonds and graphite anodes, which are important for electronics, electric vehicles, and semiconductors.

These new rules will take effect in November. Analysts say China made this move just before the current tariff deal between the two nations is set to expire. It’s a way for Beijing to gain leverage in future talks.

China already controls much of the world’s supply of rare earth minerals, which are critical for things like smartphones, wind turbines, and military technology. Limiting exports gives China a strong bargaining chip, but it also increases global concern about over-reliance on one country for these materials.

2. U.S. Technology Restrictions

The United States, on the other hand, has been trying to stop China from getting the most advanced semiconductor technology. Washington says it’s worried that such technology could be used for military or artificial intelligence (AI) purposes.

These export restrictions make it harder for Chinese companies to buy high-end chips or the machines used to make them. China has strongly criticized these moves, saying the U.S. is unfairly trying to block its progress and economic growth.

For both countries, this fight is not only about economics — it’s about who will lead the next generation of technology.

3. Taiwan and Diplomatic Language

Taiwan continues to be one of the most sensitive and emotional topics in U.S.–China relations. China sees Taiwan as part of its territory, while the United States supports Taiwan’s right to defend itself.

Beijing has asked Washington to change its wording on Taiwan. Right now, the U.S. says it “does not support Taiwan independence.” China wants the U.S. to go further and say “we oppose Taiwan independence.” That small difference in words carries a lot of political weight. The U.S. has not agreed to that change, and the issue remains a major source of tension.

4. Tariffs, Trade, and Investment

Trade has long been a battlefield between the two nations. China wants the U.S. to remove additional tariffs — taxes on imported goods — that were first introduced during the earlier trade wars. It also wants fewer limits on Chinese companies investing in American industries.

The U.S. remains cautious. It continues to block or closely review Chinese investments in sensitive areas like AI, telecom, aerospace, and biotech. American officials say these measures are about national security, but China sees them as unfair barriers.

At the same time, Washington has complained that China has been slow to buy U.S. goods such as soybeans and has not opened its markets widely enough for foreign businesses.

5. The Fentanyl Crisis

Another serious issue involves the fentanyl drug crisis in the United States. U.S. officials believe that many of the chemical ingredients used to make fentanyl come from China. In response, the Trump administration added a 20% tariff on certain Chinese products to pressure Beijing into taking stronger action.

China has taken some steps, such as adding new chemicals to its list of controlled substances and charging some individuals with drug-related crimes. However, U.S. officials say that’s not enough. They want stronger, more visible efforts to stop the flow of fentanyl precursors from reaching drug cartels.

Looking Ahead

Both nations say they want “stable” relations, but actions on both sides show how difficult that goal is. China is using export controls to protect its interests and show strength. The United States is using tariffs and technology restrictions to defend its industries and security.

Neither side wants open conflict, but both are testing each other’s limits. The competition now covers not just trade, but also technology, energy, and global influence.

In the months ahead, talks between Washington and Beijing will likely continue. Whether they can find common ground remains uncertain. What’s clear is that the world is watching closely — because when the U.S. and China struggle to get along, everyone feels the impact.