By the early 2020s, rivalry for innovation will accelerate between the U.S. and China. Ironically, the Trump White House has opted for a poor-economy industrial policy, whereas China has embraced a rich-economy policy.

The new US president has demonstrated his ability to act and a sense of urgency to “Make America Great Again” through a flurry of executive orders, and he will recognize that the United States and China, the two most important countries in the 21st century, can work to ensure that the American Dream and the Chinese Dream will go hand in hand with no contradiction.

President-elect Trump aims to increase the growth of the U.S. economy to 3 to 4 percent annually while stimulating domestic employment. The Trump Administration will be unable to meet these goals unless officials find a way to encourage and foster the internet economy and digital trade.

The full American tax reform is an enormous topic, but its impact at home is what matters, not whether the trade deficit barrows. Similarly, Beijing will respond forcefully to anything like a 35% across-the-board tariff aimed only at China. But in the case of the current BAT, China is best served by focusing on fixing its own house.

Claims that the recovery is an illusion are demonstrably false, but there are pitfalls ahead that the new president and Congress must recognize, including a decline in productivity, the unconventional monetary policy and political paralysis in Washington.

Moderate growth, low inflation, low labor participation rate and a growing wealth gap will be business as usual for a considerable period of time. Fundamental, systemic changes needed for the US to breakthrough its economic doldrums are unlikely in the divided political climate from now until the 2016 elections.

Concerns about the wealth gap and debt service linger to keep the US economy from growing at its full potential.

When Janet Yellen was nominated to the position of Federal Reserve Chair, investors and policy analysts cheered the nomination of the first female head, and paid great attention to the future of quantitative easing, writes Yu Xiang.