Playing a game of chicken, the two countries are just like two cars racing to each other, expecting the opponent to dodge at the last minute. Given the low speed, there will be limited damage even if no one dodges. But more rounds of collision with higher speed will inflict more serious damage on both.

As the Chinese economy becomes larger and more international, the externalities of the Chinese mode have challenged the international market. While assessing the Chinese model, I believe it necessary to de-ideologize, and draw upon the lessons of East Asia.

As the international order moves from an era of US-led hegemony to one of multipolarity, overlapping spheres of influence will increase the chances of economic and political friction. Global prosperity requires that the multilateral free-trade system be maintained and strengthened, and this can be achieved only if the national security interests of regional powers are assured.

China and US should find a way to manage their disputes without stumbling into a trade war.

As President Trump seeks to ramp up pressure on China by implementing additional tariffs, he and his administration may find the constraints of international law and WTO procedures hard to circumvent. Washington should suspend its tariff threat, sit down with President Xi’s reform-minded team and press for the further liberalization of China’s foreign direct investment and intellectual property rights regimes.

Dominic Ng warns that closer US scrutiny into investments by foreign companies could lead to a blanket ban on Chinese funding in specific sectors, in turn dealing a blow to US jobs, America’s investors, and its reputation for transparency and openness.

The US’ increasingly hard line on China makes it harder to avoid confrontation.

President Trump’s decision to lift sanctions on ZTE may have been due to China’s announcement of retaliatory tariffs on agricultural goods: tariffs that significantly impact the livelihoods of the U.S. farming community, one of Trump’s biggest supporters.

The trade war may well be an early skirmish in a much tougher battle, during which economics will ultimately trump Trump.

As the U.S. and China exchange their first barrage of tariffs, it's worth examining the flawed logic that led the U.S. to begin this trade war. The reality is that the U.S. is not the paragon of a free market economy it presents itself as, and China is not as exploitative in trade as the Trump administration would suggest.