The U.S.-China trade conflict is not simply a war over tariffs and unfair competition, but rather a manifestation of a broader problem within the global political economy itself.

The China-US trade war is putting tremendous strain on the Chinese economy. But if policymakers act wisely, they can leverage this external pressure to expedite key reforms — restructuring China’s economy to emphasize innovation and thus move upstream in the global value chain, while expanding free trade agreements abroad.

The latest escalation in US-China economic frictions points at worrisome trends. In the short run, US allies may benefit from US-China economic tensions, but serious dangers lie ahead.

"This is a very dangerous situation for us because it deepens some of the risks that the global economy is already facing."

Worries that the United States and China were digging in for a longer, costlier trade war weighed on financial markets on Monday as Beijing accused Washington of harboring “extravagant expectations” for a deal to end their dispute.

Driven by anxiety over the success of China’s growth model, the US under Trump has sought to apply “maximum pressure” through its trade war. However, an eventual bargain will serve to cement China’s leadership role not only in economics, but also global governance.

The smaller deficit suggests U.S. economic growth in the first quarter might have been stronger than previously estimated.

Disappointing indicators show similar picture in US, China and Europe

Indexes of factory activity suggest an uneven global growth outlook.