Intensified disintegration tendencies in the world economy and politics require deep scientific understanding. Especially relevant to us is the consideration of the USA and China because these states significantly shape the modern geopolitical, economic, and technological landscape. This research investigates how the trade dispute between China and the USA has influenced digital inequality within China. The authors analyze the prerequisites of the conflict related to the growth of China’s economic influence and the change in the US foreign policy. The research provides consequences for various sectors of the Chinese economy. Special attention is paid to the impact of trade restrictions and sanctions on the high-tech sector and social inequality in China. The authors conclude that the trade war has exacerbated digital inequality in China, affecting the most vulnerable segments of the high-tech sector, and created obstacles to the country’s further innovative development. In the long term, China needs to strive for a more balanced economic development model and take measures to mitigate the negative consequences of the trade war. © 2025 Elsevier B.V., All rights reserved.