President Trump, whose popularity has recently risen, according to polls, still feels that he is a hero who dares to challenge China. He seems to be unaware of the danger of economic instability.

Although the implementation date for both countries' tariffs remains unclear, industries on both sides are bracing for a damaging blow to the global economy.

As RAND points out, government subsidization of aircraft manufacturers is a conflict between Boeing and Airbus that the U.S. and E.U. have yet to resolve. If they do not establish norms now, there will be little recourse against generous Chinese governmental support of its aerospace industry in the coming years.

As oil can now be traded with RMB-denominated contracts, the rise of the petroyuan will accelerate the internationalization of the Chinese currency as investors begin to increase their allocations into Chinese financial assets.

The use of tariffs to address the United States’ trade imbalance with key trade partners will hamper longstanding U.S. economic leadership. For the U.S., addressing the trade imbalance and reviving U.S. manufacturing should not come at the expense of disrupting the established economic trade order and heightening perceptions of American exceptionalism among U.S. allies.

If Chinese companies succeed in designing and deploying key technologies for 5G systems, they may reap a whirlwind of profits from not only the communications arena, but from a multitude of new technologies. Should China win the race for 5G, companies from the PRC could cut into the profits of American technology firms, and weaken their ability to develop cutting-edge products in related fields.

With a 3 month window, if the two countries can engage in meaningful talks, a deal is still possible, and a trade war can be kept at bay.

Chinese tech firms are increasingly committing to market expansion across Southeast Asia. The development of the Digital Silk Road, especially in the ASEAN region, may provide clues about an emerging Chinese model of economic and political influence over information technology markets.

There are several major factors driving the current intellectual property infringement debate in Sino-American trade relations that must be better understood: the cultural factors highlighted by the Chinese epigram that “to steal a book is an elegant offense” and the Made in China 2025 Initiative.

US manufacturing job losses as a result of technological advances is inevitable, but China and America can manage the resulting hardship together.