Many observers believe that the US is doing the rest of the world a huge favor by running chronic current-account deficits – namely, supporting the large surplus countries, which tend to suffer from a shortfall of domestic demand. Others, including me, are more critical of America’s long-standing penchant for excess consumption and the role that surplus economies play in enabling it.

A few short years ago, China and the United States appeared to be cooperating; today, the two are rivals in nearly every respect. What will become of this relationship, and how can existing international institutions and principles shape its future?

Because the US Dollar is the world’s reserve currency, economic turmoil makes people flock to it – even when that turmoil is created by America itself.

The US trade allegations against China are unsubstantiated by facts.

In the face of an uncertain global environment and systemic risks, China must continue its reform and opening up policy to ensure economic stability.

Though the Trump administration believes that the trade war can extract concessions from China, it also significantly harms the U.S. economy.

Overconfidence in his strategy of “maximum pressure” has led Trump to mistakenly believe that he can apply it to China.

As the threat of the seemingly inevitable trade war between the US and China looms over the horizon, a thorough analysis shows that not all is lost for China, and sheds light on who the true victor may be.

The strategic perception that U.S. trade measures against China could provoke a Chinese debt crisis and thus coerce the CPC into early commercial capitulation is based on a grave miscalculation of Chinese economic fundamentals. This misjudgment could escalate and prolong an otherwise limited trade war with disastrous consequences for China-U.S. relations and the global economic order.

Business Roundtable urges Trump administration to focus on changes to Chinese tariffs, investments and regulations.